Share prices on JSX are expected to be flatter
Share prices on JSX are expected to be flatter
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
are expected to stay flat this week as most domestic and foreign
investors are likely to hold their money for new initial public
offerings (IPOs), securities analysts and dealers said.
David Chang, research director for Vicker Ballas Tamara, said
many investors were turning to the new IPOs.
"Investors will hold their money to invest in the new IPOs,"
David said.
Because of this trading activities on the JSX would be quiet
and share prices would stay flat in the coming weeks, he said.
Some of the companies due to offer shares on the JSX in May
are Unibank, Eterindo Wahanatama, Putra Surya Multidana, Asia
Inti Selera.
Besides that, analysts and dealers said many foreign
investors would be in a "wait and see" mood amid growing concern
about possible riots prior to the general election on May 29.
Supporters of the ousted Indonesian Democratic Party (PDI)
chairwoman Megawati Soekarnoputri demonstrated on Tuesday, in
what is believed to be the largest rally of her supporters so
far.
The Armed Forces tolerated the demonstration but have demanded
they do not to stage another in the coming weeks.
Early this month, there were riots in three cities in Central
Java, Pekalongan, Rembang and Temanggung week with nine people
injured, one house vandalized, several shops attacked and 15
vehicles set on fire.
"Foreign investors are worried about riots," said a securities
analyst from a joint venture firm.
The government has said there will be economic stability
before the election.
The JSX composite index rose 0.44 points last week to close at
637.59 points last Thursday, from 637.15 in the previous week.
The market was closed on Friday for Idul Adha, the Sacrifice
Day.
Total daily turnover last week rose to 180.1 million shares,
up from 172.78 million shares the previous week.
Total daily trading value also increased to Rp 458.9 billion
(US$189.2 million), from Rp 356.83 billion ($148.68 million) in
the previous week.
Irfan Nasution of Amsteel Securities said the high turnover
and value reached last week was pushed by the increased trading
activities on Wall Street on Tuesday.
"The increase on Wall street brought trading activities on the
JSX up," said one securities analyst, adding that other regional
markets were also affected.
Several big capitalized stocks or blue chip stocks on the JSX
closed mixed last week.
Bank Negara Indonesia and Astra International remained
unchanged at Rp 1,375 and Rp 5,800 respectively.
HM Sampoerna dropped by Rp 200 to Rp 9,425, Gudang Garam by Rp
75 to Rp 10,000, Telkom by Rp 25 to Rp 3,625.
Analysts said the drop in HM Sampoerna shares was due to
losses in controlling market shares for light cigarettes against
its competitor Djarum.
Indosat gained by Rp 75 to Rp 6,700 and Bimantara Citra by Rp
200 to Rp 3,300.
The mid size stocks that dropped last week were Multibreeder
Adirama Indonesia by Rp 200 to Rp 800, Bank Pikko by Rp 600 to Rp
3,100, Supermitory Utama by Rp 200 to Rp 3,150. (09)