Stock prices become difficult to predict

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)