Shares strengthen on Jakarta stock market

Shares strengthen on Jakarta stock market

JAKARTA (JP): Share trading on the Jakarta Stock Exchange
(JSX) strengthened yesterday with the main price index rising
4.49 points.

Securities brokers said the market was marked with bargain
hunting on heavyweight stocks and speculative buying on selected
second line stocks.

"The overall market was relatively firm especially on the back
of investor bargain hunting on certain big companies and second
line stocks," a Harita Securitas broker said yesterday.

The JSX composite index closed 4.89 points higher at 652.78
points yesterday, with 171.12 million shares changing hands at a
total transaction value of Rp 354.49 billion (US$147.74 million).

Advancers led decliners by 65 to 46 with 76 counters
unchanged.

The broker said Duta Pertiwi Nusantara, a formalin and
thermosetting adhesive producer of the diversified Sinar Mas
group, was one of yesterday's gainers, with shares rising Rp 500
to close at Rp 2,325 from an opening of Rp 1,825.

She said the 27 percent increase in the company's shares was
driven by a market rumor that the company would propose a share
split in a shareholders meeting next June.

The broker also said Elang Realty shares were active on the
news report that Bakrie Land through joint venture PT Bakrie Goro
Land had signed a memorandum of understanding to acquire 60
percent of Gelael supermarket.

Elang Realty rose by Rp 25 to close at Rp 1,650.

Brokers said most foreign investors were also active on big
company stocks, which had mostly been undervalued.

Among the big company stocks which gained were PT Telkom which
rose by Rp 100 to close at Rp 3,550, HM Sampoerna by Rp 75 to Rp
9,675, Gudang Garam by Rp 50 to Rp 9,700, and Bank Negara
Indonesian (BNI) by Rp 25 to Rp 1,475.

"After declining last week, these stocks were on a technical
rebound yesterday," a securities analyst said.

Brokers and securities analysts said the election campaign did
not seem to have had any further negative impact on trading on
the JSX.

"Campaign activities had a relatively small impact on the
market," one dealer said.

Brokers said the release of the controversial report on the
Busang gold deposit in East Kalimantan by an independent analyst
Strathcona yesterday did not dampen the entire market but
depleted the sentiment of mining firm PT Tambang Timah.

Tambang Timah's share price dipped by Rp 225 to close at Rp
3,700 yesterday.

In the currency market, the rupiah was little changed against
the dollar in flat trading yesterday.

A money market dealer said the rupiah was relatively firm
despite the election campaign, hovering between 2,425.0 and
2,430.

Spot rupiah was at 2,425.25/26.25 against an opening of
2,429.0/30.0 in the morning. (09)