Share prices expected to consolidate: Analysts
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX) are expected to consolidate this week as most investors would remain mixed, analysts and brokers said.
"Some investors would invest on blue chips even though some others would hold," a broker with a joint-venture brokerage house said.
An analyst from Amsteel Securities said that some investors are in wait-and-see positions to anticipate more initial public offerings and the launch of a new deregulation package in the next two weeks.
The government is expected to launch a new deregulation package this month to support the economic efficiency and to open some sectors of the economy to foreign investors.
"Investors are waiting for the impact of the deregulatory package," one analyst said, adding that if the impact was positive, more fresh funds would flow onto the market.
He said foreign investors were also waiting for the new U.S. unemployment figures, which would be released in the next few weeks.
"The investors also anticipate the impact of the unemployment release by the U.S. government to the Federal interest rate," the analyst said.
The JSX composite index slipped 1.01 points lower to close at 695.02 points last week from 696.03 the previous week.
However, daily average turnover rose to 296.04 million shares last week from 283.45 million shares changing hands the previous week.
The daily total transaction value also rose to Rp 556.87 billion (US$232.03 million) last week from Rp 552.09 billion ($230,04 million) the previous week.
Last week, blue chip stocks closed mixed.
Blue chip stocks which gained ground were those which became the target of foreign investors due to their cheap price.
"As predicted, most investors would buy blue chip stocks while they are cheap after the election," an analyst from Harita Securities said over the weekend.
Cigarettemaker HM Sampoerna jumped by Rp 525 to close at Rp 10,350, Indosat by Rp 200 to Rp 7,450, state-owned Bank Negara Indonesia (BNI) by Rp 25 to Rp 1,625.
Other blue chips lost ground, including PT Telkom, which dropped by Rp 150 to close at Rp 3,950, cigarettemaker Gudang Garam slipped Rp 150 to close at Rp 10,350 and Bank Internasional Indonesia lost Rp 50 to close at Rp 1,950.
Analysts said that most local investors targeted their investments on midsize stocks, including the newly listed United City Bank of the Raja Garuda Mas Group and PT Intikeramik Alamasri Industri.
United City Bank rose by Rp 225 to close at Rp 900 last week while Intikeramik Alamasri rose Rp 125 to Rp 875 last week.
Analysts said the presence of local investors was expected to give a high contribution to the trading transaction on the market with the presence of mutual funds on the market.
"Fund management companies have a lot of funds to invest," an analyst from Amsteel Securities said. (09)