Small-capped shares under spotlight on JSX

Small-capped shares under spotlight on JSX

JAKARTA (JP): Small issues were under the spotlight on the
Jakarta Stock Exchange (JSX) last week, with local players
speculating on small-capped counters, most of which were trading
under par.

Trading on the market was moderate with the JSX Composite
Index closing the week with little movement, up by 493.24 points
from the week's opening of 492.81.

There was a particularly strong sentiment on textile stocks,
which seemed to have been sparked by rumors of an acquisition
concerning Pan Brothers Tex. Sentiment on timber stocks also
weakened further, following the comment of Apkindo, the
Indonesian plywood producer association, that it cannot guarantee
that its export target is achievable. Heavy equipment company,
Intraco Penta, was the week's star performer, rocketing to a high
Rp 2,150 last week, from the previous week's price of Rp 1,000.
The reason behind the speculation was unclear, for a counter
which had been illiquid for sometime. The U.S. Federal Reserve's
decision not to raise interest rates was also widely expected,
and did not have a significant impact of the market.

Over the short term the market is likely to trade through its
narrow trading path, as investors anticipates the initial public
offering (IPO) of the state-owned domestic telecommunications
company PT Telkom and the state-owned tin mining firm PT Tambang
Timah.

Speculative issues

Local players were seen active on speculative issues. The
counters which sow active domestic trading included Pan Brothers,
Intraco Penta, Smart Corp., Bimantara, Mayatexdian, Ganda Wangsa,
PSP, Concord Benefit Enterprise, Astra International, Dharmala
Intiland, Evershine Textile and Rig Tenders.

Foreign investors were largely cautious, with upcoming IPOs
over the last quarter of the year. Counters which saw active
foreign trading included SMART Corp., Gadjah Tunggal, Bimantara,
Barito, BDNI, Semen Gresik, Inti Indorayon and Bank Internasional
Indonesia.

Average daily turnover on the regular board increased to 35.8
million shares worth Rp 67.6 billion (US$29.7 million) from 18.3
million shares worth Rp 51.7 billion in the previous week. Last
week's total turnover increased to 246.7 million shares valued at
Rp 590.4 billion (US$259.5 million) from 144.2 million shares
valued at Rp 488.2 billion in the previous week.

Some of the best performers last week were Hotel Prapatan (up
Rp 1,175), Bank Bali (up Rp 625), Sari Husada (up Rp 600), Modern
Photo (up Rp 500) and Dharmala Agrifood (up Rp 475). The biggest
losers were Ugahari (down Rp 600), Bank Internasional Indonesia
(down Rp 450), Bakrie Sumatra P (down Rp 425), Tempo Scan (down
Rp 375) and Lippo Life (down Rp 350). Gainers outnumbered losers
50 to 80, while 40 counters remained unchanged.

-- Sigma Batara