Slower U.S. economy propels JSX index up
Slower U.S. economy propels JSX index up
JAKARTA (JP): Signs of a slower U.S. economy brought an influx of foreign funds into the stock market last week, propelling the Jakarta composite index up by 34.52 points (8.1 percent) to 461.53.
There are expectations that the U.S. Federal Reserve may lower interest rates, after U.S. long-term bond rates fell to their lowest level in 13 months. Yields on U.S. 30-year Treasury Bonds closed at 6.94 percent last Tuesday. Meanwhile, the greenback seems to have found its support against the major currencies and has somewhat stabilized. The sharp rises on Wall Street have also ignited interest in the regional bourses.
Indosat's better-than-expected first quarter results pushed the price of its shares to Rp 9,400 (US$4.21) last week, its highest level since listing. Budi Acid, a chemical company, made its lackluster debut last week as traders were focused mainly on blue-chip stocks.
In the short term, we expect a technical adjustment in the market as investors take profit on last week's gain. However, we see some support at the 450 level.
Local players took their cue from foreign investors and were quick to jump on the bandwagon. Counters which were actively traded by local players included BDNI, BII, Smart, Gadjah Tunggal, Indah Kiat, Tjiwi Kimia, Japfa, Lippoland, Duta Anggada, Pakuwon Jati, JIHD, PSP and Dharmala Intiland.
Foreign investors were seen focusing on most blue-chip stocks, although active trading was seen across the board. Counters which saw active trading by foreigners included Gadjah Tunggal, BDNI, BII, Indah Kiat, Tjiwi Kimia Astra International, Smart, Dharmala Intiland, Duta Anggada, Lippoland, Barito Pacific Timber, Indosat, Indocement, HM Sampoerna and Indofood.
Average daily turnover on the regular board increased to 34.50 million shares worth Rp 108.90 billion (US$48.79 million) last week from 15.11 million shares worth Rp 45.18 billion in the previous week. Last week's total turnover increased to 213.76 million shares valued at Rp 725.15 billion from 136.21 million shares valued at Rp 443.19 billion in the previous week.
Some of last week's best performers were P & G Indonesia (up Rp 5,000), Gudang Garam (up Rp 1,850), HM Sampoerna (up Rp 1,550), Modern Photo (up Rp 1,400) and Kalbe Farma (up Rp 1,350).
The biggest losers were Panca Wiratama (down Rp 1,600), Tira Austenite (down Rp 1,300), Putra Sejahtera (down Rp 400), Fajar Surya Wisesa (down Rp 350) and Ades Alfindo (down Rp 275).
Gainers outnumbered losers by 113 to 22, while 20 counters remained unchanged.
-- Sigma Batara