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)