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