Share prices on JSX close slightly higher
Share prices on JSX close slightly higher
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
rose slightly yesterday as many heavyweight stocks lost ground in
active trading.
Brokers said that a number of blue chips were under selling
pressure as investors dumped heavyweight stocks following reports
of more campaign violence in the country's main cities.
Foreign investors fear the situation will get worst next week
when the three political parties -- Golkar, the Moslem-based
United Development Party (PPP) and the Indonesian Democratic
Party (PDI) -- end their campaigns.
"The selling pressure is due to domestic political issues
rather than external factors such as reports on the possible
devaluation of the Thai currency," an analyst said.
The JSX composite index closed almost unchanged at 657.07
points compared to 656.98 the previous day.
Total shares changing hands were 379.02 million yesterday
worth Rp 599.38 billion (US$249.74 million).
Most second and third line shares gained ground in moderate
trading.
A Harita Securities analyst said banking stocks which lost
ground Thursday on the drop in the Thai baht, mostly recovered in
active trading.
Investors fear the Thai financial problem will cause a domino
affect on other Southeast Asian countries like the financial
crisis which hit Mexico in late 1995. The Mexican crisis caused a
massive outflow of foreign funds not only in Mexico but also in
other developing nations such as Indonesia, Malaysia and
Thailand.
"Indonesia has strong economic fundamentals," head of research
of Vickers Ballas Tamara David Chang said yesterday. He said that
would stop foreign investors running away from the local market.
Telkom remained unchanged yesterday at Rp 3,675, Cigarette
maker Sampoerna fell Rp 250 to Rp 9,700 while rival Gudang Garam
was down Rp 50 to Rp 9,725.
Satellite operator Indosat dropped Rp 125 to Rp 6,800 on
continued foreign selling with disappointing first quarter
results also weighing on the stock. (09)