Share prices plunge on JSX

Share prices plunge on JSX

JAKARTA (JP): Share prices closed lower across the board on
the Jakarta Stock Exchange (JSX) last week, amid deteriorating
sentiment.

The JSX composite index closed the week plunging by 12.01
points from the week's opening of 502.004.

Lack of fresh incentives and support from foreign investors
finally dragged the index below its support level of 500. With
most foreign investors on the sideline, local investors switched
their focus on the speculative small-capped stocks, trading below
their par value.

Shoe producer Ganda Wangsa saw active trading on takeover
rumors by Salim Group-owned shoe producer Indosepamas. The rumor
was later officially denied by Indosepamas. Rig Tenders also saw
unusually active trading, following talks that the company had
secured a long-term contract with a coal mining company.

Towards the end of the week, sentiment deteriorated further on
the news of the country's trade deficit for June. Meanwhile, news
on the low inflation rate for August did little to improve
sentiment. Over the short-term, there is likelihood of rebound.

Local players were seen active on speculative issues. The
counters which were actively traded by them included SMART Corp,
Rig Tenders, BDNI, Mayatexdian, Ganda Wangsa, Roda Vivatex,
Berlian Laju Tanker, Indah Kiat, Perdana Bangun Pusaka, PSP,
Dharmala Intiland and Surya Hidup Satwa.

Foreign investors were the net sellers during the week. They
were responsible for strong selling pressure on large-capped
counters such as BDNI, BII, Sinar Mas Multi Artha, Barito and
Semen Gresik. These counters fell due to uncertainty regarding
their ability to meet their 1995 profit projections. Other
counters which saw active foreign trading included SMART Corp,
Bimantara, Gadjah Tunggal, CMNP, Argha Karya and Astra
International.

Average daily turnover on the regular board decreased to 23.6
million shares worth Rp 55.4 billion (US$24.4 million) last week,
from 21.4 million shares worth Rp 55.8 billion in the previous
week. Last week's total turnover decreased to 164.5 million
shares valued at Rp 469.8 billion from 175.8 million shares
valued at Rp 531.4 billion in the previous week.

Some of last week's best performers were Trias Sentosa (up Rp
575), Budi Acid Jaya (up Rp 400), Dynaplast (up Rp 350), Super
Indah Makmur (up Rp 325) and Jaya Real Property (up Rp 300). The
biggest losers were Gudang Garam (down Rp 800), Berlina (down Rp
775), Bank Int'l Ind. (down Rp 600), KIA (down Rp 550) and
Sumalindo Lestari (down Rp 450). Losers outnumbered gainers by 78
to 39, while 38 counters remained unchanged.

-- Sigma Batara