Stock market maintains upward momentum

Stock market maintains upward momentum

JAKARTA (JP): The market continued its upward momentum last
week as local and foreign investors followed the advice of a
number of major securities houses to increase their investment in
Indonesia.

The Jakarta Stock Exchange (JSX) Composite Index closed the
week at 532.36, up 16.80 points from the proceeding's week close
of 515.56.

Several positive factors were the major force behind the
market's sustained climb. The factors include the anticipated
listing of PT Indosat, the state-owned international
telecommunications company, by October, the government's plan to
lower the maximum rate of income tax by five percent, the
increase in banks' net open position to 25 percent from 20
percent, and the central bank's widening of the rupiah-dollar
intervention band from Rp 20 to Rp 30.

Profit taking on heavy-weight Barito Pacific towards the
middle of the week had minimal impact on the market. The
counter's price bounced back at the end of the week to
Rp 7,875 from the previous day's closing of Rp 7,700.

This was due to the Ministry of Forestry statement saying that
the government has equity interest in two of Barito's
subsidiaries rather than the listed entity as previously
reported.

Average daily turnover on the regular board increased to 19.24
million shares worth Rp 74.92 billion (US$34.43 million) last
week from 17.44 million shares worth Rp 60.35 billion the
previous week.

Total turnover for the week increased to 150.12 million shares
valued at Rp 660.16 billion from 139.62 million shares valued at
Rp 643.30 billion the previous week.

Foreign investors were seen active across the board, mainly
locking into liquid counters, in anticipation of an easy
ride of the market's bull run.

Counters which were dominated by foreign investors were BDNI,
JIHD, Duta Anggada, Mulialand, PSP, Indah Kiat, Barito, Smart, HM
Sampoerna, Indofood, Astra Int'l, Japfa, Enseval, Mayatexdian,
Mulia Industrindo and Argha Karya.

Following strong trading activities at the beginning of the
week, local investors started to take profit from the second
session of Thursday until Friday. They were mostly seen on
counters such as Surabaya Agung, BDNI, Indah Kiat, Tjiwi Kimia,
Smart, Ganda Wangsa, Inco and UIC.

Some of last week's best performers were Sari Husada (up Rp
2,400), HM Sampoerna (up Rp 1,600), Gudang Garam, Mayora Indah
and Tigaraksa (up Rp 1,400). The biggest losers were P&G
Indonesia (down Rp 9,500), Suba Indah (down Rp 1,300), Barito
Pacific (down Rp 450), Polysindo (down Rp 375) and Berlina (down
Rp 350). Gainers outnumbered losers by 78 to 44, while 81
remained unchanged.

-- Sigma Batara