Stock prices become difficult to predict
JAKARTA (JP): Several analysts said they were uncertain as to which direction the stock prices on the Jakarta Stock Exchange (JSX) are likely to move this week, while investors' attention will focus on an Astra "takeover" and several new initial public offerings (IPO).
The president of PT BZW Niaga Securities, Steven Kenny, told The Jakarta Post over the weekend that in the next few weeks, the market is likely to fluctuate up or down between a range of 2 percent and 5 percent.
Steven said that general sentiment will remain weak in line with lack of new inflow of funds.
"To some extent, many investors will stay sidelined due to both concentration on several forthcoming new issues (IPO) and lack of positive issues on the market," a senior manager with a local securities firm said.
The manager, who declined to be named, said that the market seems to positively welcome the IPOs of several companies, including Bank Negara Indonesia 1946, PT Daya Guna and PT Sierad Produce.
He said the market has also speculated that the Lippo Group may float shares of its joint venture PT Siloam Glenn Eagle Heath Care later this year.
Steven also noted that investors are not happy with the latest development on PT Astra International due to uncertainty of the motive behind its share acquisition by Putera Sampoerna.
"Investors are now not in a position to decide," he said.
The two analysts said, however, that Astra's share price would continue to increase on its expected stronger performance in the second half of this year.
They also shared the opinion that the market sentiment on Astra could be much more positive if any parties which have already bought Astra shares disclosed their motives.
Speculation on who wants to control Astra is likely to continue this week following the announcement by timber tycoon Mohamad (Bob) Hasan that PT Nusantara Ampera Bakhti (Nusamba), a business group controlled by three foundations headed by President Soeharto, intends to buy Astra shares.
Sampoerna
The JSX's share prices fell by 2.9 percent last week, triggered by a sharp plunge of Sampoerna's share price early in the week.
Several dealers said that the uncertainty on Astra's takeover rumor and negative reactions to Putera's move on Astra pushed down not only Sampoerna but also other bluechips.
The JSX Composite Index closed the week 17 points lower at 571.23.
Total turnover reached 536 million shares worth Rp 1.1 trillion (US$469 million).
Foreign buy transactions amounted Rp 595 billion against sell transactions' value of Rp 629 billion.
Sampoerna booked total transactions worth 9.3 million shares during the week at a total cost of Rp 180 billion, while Astra recorded a trading volume of 17 million shares worth Rp 65 billion. Its share price fell by Rp 2,850 to Rp 19,600 at the week close.
Separately, speculative buying by local investors helped boost trading of small cap stocks including Inter Delta and Hotel Sahid Jaya on rumors of acquisition.
Inter Delta booked total transactions of 8.7 million shares worth Rp 24 billion with its share price rising by 37 percent to Rp 3,250 at the week's close. (alo)