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)