Share prices drop 18.5% percent on JSX

JAKARTA (JP): Share prices closed lower amidst consolidation on the Jakarta Stock Exchange last week, with its composite index dropping 18.5 points (3.6 percent) from the week's opening of 519.18 to close at 500.65.

The market was closed on Thursday, due to the Indonesian Independence Day.

The overall sentiment was weak, having been deteriorated by falls in the regional bourses throughout the week. There were bouts of selling seen across the board with support only on few selective blue-chip consumer stocks.

The release of several positive first-half corporate results failed to boost sentiment. The market which has risen well above its support level of 500, seemed to run out of steam. Most large capped and blue-chip stocks have been over-bought for quite sometime. The problem lay in a lack of availability of first-line stocks which were liquid and undervalued.

This week, the market will likely continue to weaken. Although we expect that further release of positive first-half corporate results should lend limited support.

Local players were very active last week, with a particular focus on the financial sector. The counters which were actively traded included Astra International, Surya Hidup Satwa, SMART Corp, Bimantara Citra, Gadjah Tunggal, Barito Pacific, Indah Kiat, Dharmala Intiland, Summarecon and PSP.

Foreign investors took the sidelines and dominated the selling on the market. Counters which saw active foreign trading included Astra International, Surya Hidup Satwa, SMART Corp, Bimantara Citra, Matahari Putra Prima, Bakrie Brothers, Gadjah Tunggal, Enseval Putera M, Barito Pacific, Indosat, Indah Kiat and BDNI.

Average daily turnover on the regular board decreased to 18.2 million shares worth Rp 61.8 billion (US$27.3 million) last week from 20.8 million shares worth Rp 66.6 billion the previous week. Total turnover for the week decreased to 147.0 million shares valued at Rp 546.9 billion from 168.2 million shares valued at Rp 572.6 billion the previous week.

Some of last week's best performers were Darya-Varia Lab. (up Rp 1,000), BAT (up Rp 550), KIA (up Rp 450), Aneka Kimia Raya (up Rp 300) and Matahari PP (up Rp 225). The biggest losers were Mayora Indah (down Rp 1,750), Gudang Garam (down Rp 1,700), Modern Photo (down Rp 750), Indosat (down Rp 525) and Tjiwi Kimia (down Rp 475).

Losers outnumbered gainers by 110 to 26, while 26 counters remained unchanged.

-- Sigma Batara