Quarterly results may attract investors
Quarterly results may attract investors
JAKARTA (JP): An analyst with a Hong Kong-based securities
company foresees the Jakarta Stock Exchange (JSX) performing
softly this week on lack of fresh issues.
"I do not expect any significant price movements of stocks
next week. What may ignite the market are strong first-quarter
results and new share-issues," the analyst, who preferred
anonymity, told The Jakarta Post here over the weekend.
"I would say that investors have already gotten bored with
what is going on in the market. What they really need now are new
stories," he added.
According to the analyst, some companies have already
published their first-quarter results but failed to support the
market because most reports are disappointing.
"We are looking forward to more positive reports. If it
doesn't happen, we should wait for first-half results," he added.
"But as far as the transaction volume is concerned, I would
say that the market is still strong," he said.
The managing director of PT Lippo Securities, Kelvin Lee,
foresaw selective buying on first-liner and second-liner stocks
to happen this week.
"I think analysts are now busy studying first-quarter results
of companies to see if the results meet their forecasts. Based on
analysts' research, foreign investors may start to selectively
buy first-liner stocks or even second-liners," Lee told the Post.
"But I should say that the forthcoming weeks will be tough for
third-liner stocks. Trading on the third-liner is going to be
very quiet," he predicted.
He cited that another reason for investors' selectivity is the
estimated large amount of funds to be raised by some companies
through rights issues.
In a situation where many companies plan rights issue,
investors may get worried whether to sell their positions or to
take positions, he added.
Another analyst, who preferred to be unnamed, wondered if some
planned initial public offerings would activate the market.
"It is because the size of those planned issues is too small,"
he said.
The three analysts agreed that the market will remain quiet
this week.
The Capital Market Supervisory Agency said there might be one
initial public offering to get the agency's approval at the end
of this month. If it's true, then this weekend will see one
public offering.
Another issue worth noting, according to Lee, is a new
downtrend movement of domestic interest rates.
Quiet
The JSX saw another week of quiet trading last week due to
less participation by foreign investors, while domestic retail
investors who had been so active on thinly-traded stocks in the
previous weeks also ended their speculative actions, an analyst
said.
JSX share prices declined by 0.6 percent, with the composite
index closing the week down by 4 points to 618.06.
Total transactions reached 346 million shares worth Rp 1
trillion (US$426 million).
Foreign-buy transactions amounted to Rp 609 billion against
total sell transactions of Rp 671 billion.
The most active stocks in terms of value were Telkom (with a
total transaction value of Rp 93 billion), Jababeka (Rp 56
billion), Steady Safe (Rp 47 billion), Indocement (Rp 46
billion), Lippo Land (Rp 41 billion), Indosat (Rp 37 billion),
BDNI (Rp 33 billion), CMNP (Rp 32 billion), Astra International
(Rp 32 billion) and HM Sampoerna (Rp 31 billion).
An electronic equipment distributor, Astra Graphia, advanced
14 percent to close at Rp 3,925 on the news that the company will
acquire a subsidiary of Astra International.
The top 10 securities companies in terms of trading value are
Makindo, Credit Lyonnais, Lippo Securities, Niaga Securities,
Peregrine Sewu, HG Asia, Jardine Fleming, ING Baring Sec.,
Merrill Lynch and Bhakti Investama. (alo)