Stock exchange index gains 20 points in a week

Stock exchange index gains 20 points in a week

JAKARTA (JP): The Jakarta Stock Exchange was seen trading in a
narrow range of between 491 and 493 in the early part of last
week, but rebounded significantly after the holiday closing on
Wednesday to the 504 level on Thursday.

The JSX Composite Index closed the week at 512.79, up by 20.46
points (4.2%) from the last week's opening of 492.33.

The new capital market law on lending and borrowing
securities, to be implemented next month, coupled with other new
capital market regulations, gave confidence to investors trading
through the JSX. The law is anticipated to enhance liquidity of
the bourse.

The trimming of the discount rate by 25 basis points by the
U.S. Federal Reserve boosted the overall market sentiment at the
end of last week.

Two telecommunications companies, Telkom and Indosat, which
are listed on the NYSE, saw substantial increases in their share
prices, although there were no significant changes in the
fundamentals of the companies. Telkom's price rose by 7.5 percent
to Friday's close of Rp 2,875, after touching the highest level
at Rp 2,950. Indosat rose by 9.6 percent to Rp 8,575 during the
week. Overall, the market remained active on the last day of
trading before the Christmas holiday, partly as a result of a
year-end window dressing effort to boost prices.

Trading activities this week are expected to be moderate with
only three days of trading, as the JSX will be closed for
Christmas and on Friday. The market is anticipated to continue to
fluctuate within a narrow trading range of between 505 and 510.

Foreign-triggered buying remained mostly in heavily
capitalized and liquid stocks. Counters which saw active trading
include Telkom, Indosat, HM Sampoerna, Gudang Garam, Indah Kiat,
Semen Gresik, Matahari, Darya Varia, Mayora, BDNI, BII, Lippo
Bank, Gadjah Tunggal, Indocement and Smart.

Local players' activities continued to be concentrated on big-
capitalized and speculative stocks. Counters which were actively
traded included Telkom, Indosat, Indah Kiat, Barito Pacific,
CMNP, Lippo Bank, Dharmala Intiland, Bimantara Citra, Duta
Anggada, Smart, PSP, Perdana Bangun Pusaka and Rig Tenders.

Average daily turnover on the regular board increased to 26.2
million shares worth Rp 77.2 billion (US$33.5 million) from 27.7
million shares worth Rp 70.4 billion in the previous week. Last
week's total turnover also increased to 254.1 million shares
valued at Rp 692.6 billion from 236.6 million shares worth Rp
646.4 billion in the previous week.

Some of the best performers last week were HM Sampoerna (up
Rp 1,600), Gudang Garam (up Rp 1,300), Indofood SM (up Rp 1,250),
BII (up Rp 800) and Indosat (up Rp 750). The biggest losers were
Unilever (down Rp 775), Tembaga Mulia (down Rp 500), Mulia
Industrindo (down Rp 400), Lionmesh and Sekar Bumi (each down Rp
300). Losers outnumbered gainers by 64 to 63, while 34 counters
remained unchanged.

-- Sigma Batara