Share prices rebound after 3-week plunge

JAKARTA (JP): The market, which has been in an oversold position over the last three weeks, finally rebounded after hitting a firm support level at 447.75 during the middle of last week.

Share prices on the Jakarta Stock Exchange (JSX) ended mixed at the end of last week, with the JSX Composite Index closing at 458.78, 4.7 points (1.04 percent) higher than the previous week's close of 454.08.

Reports of firm economic growth in the US boosted the US market, which was closely followed by the regional bourses. Local bargain hunters and a few foreign investors took advantage of the technical rebound and quickly snapped up large cap stocks which have been heavily discounted over the past few weeks.

Domestically, economic fundamentals remain up-beat, while fears of further US interest hikes has temporarily subdued.

The technical rebound indicated that the market seems to have reached the limit of its potential downside. However, over the short term, the market is most likely to decelerate and move sideways as worries of another rise in interest rates in the US re- emerges.

Average daily turnover on the regular board decreased to 10.73 million shares worth Rp 39.53 billion (US$17.99 million) last week from 12.51 million shares worth Rp 43.56 billion in the previous week.

Last week's total turnover increased to 125.96 million shares valued at Rp 461.14 billion from 117.19 million shares valued at Rp 431.32 billion the previous week.

Local players dominated the buying positions. However they were taking profit towards the week's closing. Stocks which were actively traded included Indosat, Duta Anggada, Smart, Gadjah Tunggal, Dharmala Intiland and BDNI.

Foreign players were still largely dominating the selling positions. However, some ventured in and took a short term stance in the market. Stocks which were actively traded included Astra Int'l, Duta Anggada, Gadjah Tunggal, Gudang Garam and HM Sampoerna.

There were three bonus issues listed last week, such as Ficorinvest (1-for-1), Roda Vivatex (1-for-2) and Summarecon Agung (1-for-2 in form of stock dividends).

Some of last week's best performers were Indosepamas (up Rp 1,050), HM Sampoerna (up Rp 950), Gudang Garam (up Rp 700), Duta Pertiwi Nus. and Mayora Indah (up Rp 550 each) and Bakrie Sumatra P. (up Rp 525). The biggest losers were Jaya Real Property (down Rp 1,250), Tempo Scan and Sumalindo (down Rp 800 each), Surya Toto (down Rp 700) and Tembaga Mulia (down Rp 600). Gainers outnumbered Losers by 59 to 49, while 27 remained unchanged.

-- Sigma Batara