Share prices on JSX gain ground
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX) gained ground yesterday as the campaign for the May 29 election got off to a smooth start.
Dealers said trade went ahead as normal with many shares actively traded.
"There is no problem so far with the election campaign. There have been no incidents which is good for stock trading," one foreign analyst said.
Dealers said most investors concentrated on undervalued medium-sized companies and Dharmala Group's consumer finance arm, Putra Surya Multidana, which debuted on the Jakarta and Surabaya exchanges yesterday.
Multidana's closed at Rp 2,600 -- a 20 percent premium to its issue price as 118 million shares changed hands.
The JSX composite index rose 4.05 points to 656.53 on turnover of 386.6 million worth US$314 million (Rp 766.1 billion).
Cigarette maker Sampoerna rose Rp 100 to Rp 9,800 while rival Gudang Garam dipped Rp 100 to Rp 10,600. Telkom was down Rp 50 at Rp 3,550 rupiah while Indosat gained Rp 50 to Rp 6,725.
Bank Negara Indonesia was unchanged at Rp 1,350, Bank International Indonesia was steady at Rp 1,750 while Bank Danamon added Rp 50 to 2,400.
Second line stocks were also stronger as Elang Realty rose Rp 250 to Rp 1,725 on speculation it would issue more shares to raise money to buy Bakrie property projects.
The election campaign's smooth start also set a positive tone for foreign currency markets.
Money dealers said the rupiah staged a strong comeback yesterday after losing ground against the U.S. dollar last week on fears of possible campaign violence.
Spot rupiah prices recovered gradually to 2,426.5/27.0 after opening at 2,435.5/36.5.
The campaign just began "so we don't know what will happen in coming days and it will only last until May 23, one week before the elections," one trader said.
Another analyst said market sentiment would depend on what happened on the streets during the campaign.
"If the campaign activities run smoothly like on Sunday, the market should move up again," he said. (09)