Profit-taking sends prices down on JSX

Profit-taking sends prices down on JSX

JAKARTA (JP): The Jakarta Stock Exchange (JSX) failed to
sustain its upward momentum last week, following heavy bouts of
profit-taking during the early part of the week. The JSX
Composite Index lost 2.82 points (0.6 percent) to close the week
at 458.71.

Having hit the over-bought indicators, the market rally
started to lose its impetus as both foreign and local punters
cashed in on gains from the previous week.

There was some late buying towards the end of last week but it
was not sufficient to support the market.

Trading activities deteriorated towards the end of the week,
as investors took to the sidelines in anticipation of sluggish
activities as the stock exchange commences its computerized
trading in its new building in South Jakarta today. Investors are
cautious about the impact of the transition from a manual to a
computerized stock exchange.

Indofood has finally disclosed further details of its
acquisition of the Bogasari Flour Mill from Indocement. However,
both counters saw minimal activity as the information has already
been discounted by the market.

The listing of automotive distributor Tunas Ridean last
Tuesday elicited little market response although the counter
closed two points up at Rp 2,750 (US$1.23). In the short term, we
see the market trading at current levels as there is strong
support at 450 points.

Profits

Domestic players started to take profits last week at the
first sign of slower overseas activities. Counters which were
actively traded by domestic players included BDNI, Smart, Gadjah
Tunggal, Indah Kiat, Tjiwi Kimia, JAPFA, Lippoland, Duta Anggada,
Pakuwon Jati, JIHD, PSP and Dharmala Intiland.

Foreign investors were active on such counters as Gadjah
Tunggal, BDNI, United Tractors, Indah Kiat, Dharmala Intiland,
Duta Anggada, Lippoland, Barito Pacific Timber, Indosat,
Indocement, HM Sampoerna and Indofood.

Average daily turnover on the regular board decreased to
18.96 million shares worth Rp 60.15 billion (US$26.93 million)
last week from 34.50 million shares worth Rp 108.90 billion in
the previous week. Total turnover for the week decreased to
211.86 million shares valued at Rp 628.51 billion from 213.76
million shares valued at Rp 725.15 billion in the previous week.

Some of last week's best performers were Modern Photo (up Rp
1,125), Ultra Jaya (up Rp 800), Gudang Garam (up Rp 750), Tempo
Scan Pacific (up Rp 700) and Semen Gresik (up Rp 650). The
biggest losers were Ekadharma (down Rp 1,700), Perdana Finance
(down Rp 1,025), BUN (down Rp 950), BII (down Rp 725) and Indosat
(down Rp 625). Losers outnumbered gainers by 72 to 48, while 30
counters remained unchanged.

-- Sigma Batara