Share price on JSX lose ground

JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX) weakened yesterday after a slight rise Wednesday, with the main price index losing 1.5 points in moderate trading.

Securities analysts attributed the decline in the market sentiment on a change in investors's trading direction.

Many investors chose shares of companies included in the newly revised Morgan Stanley Capital International (MSCI) index, brokers said.

"Trading activities in the market yesterday were driven by the MSCI index issue. Stocks to be included in the index rose, while those to be deleted dropped," an analyst from ING Barings Securities Indonesia said yesterday.

The JSX composite index lost 1.59 points to close at 650.46 with 318.9 million shares worth Rp 584.4 billion (US$243. 50 million) changing hands.

The analyst said stocks in the new MSCI index including Bank Negara Indonesia, toll road operator Citra Marga Nusaphala, Bimantara Citra and second line stocks such as Budi Acid Jaya, Sierad Produce and Fiskar Agung recorded gains yesterday.

Bank Negara Indonesia gained by Rp 150 to close at Rp 1,500, Citra Marga Nusaphala Persada by Rp 150 to Rp 2,275 and Bimantara Citra by Rp 275 to Rp 3,575 yesterday.

Second line stock Budi Acid Jaya gained by Rp 225 to Rp 3,200, Sierad Produce by Rp 100 to Rp 825 and Fiskar Agung by Rp 225 to Rp 3,950.

Big stocks like HM Sampoerna and Gudang Garam fell yesterday. Gudang Garam fell by Rp 750 to Rp 9,475 following the downgrade of its weighting in the MSCI index, while Sampoerna fell Rp 25 to Rp 9,750.

Telkom fell by Rp 25 to Rp 3,500 while Indosat remained unchanged at Rp 6,700.

On the currency market, the Indonesian rupiah was little changed against the dollar in quite late trading yesterday.

Spot rupiah was at 2,432.75/33.25 compared with an opening of 2,430.0/31.0.

A dealer said the absence of Singapore players due to a public holiday there slowed trading activities.

Analysts also said foreign investors generally remained cautious due to the fear of riots in the general election campaign.

"Foreign investors remained very cautious and held on to their investments," the analyst from ING Baring Securities said. (09)