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