Stock prices continued plummeting last week

JAKARTA (JP): The Indonesian stock market continued to plummet last week in line with other stock markets in the region, led by a 49-point fall on the New York Stock Exchange last Thursday. The Jakarta Stock Exchange (JSX) Composite Index closed at 454.08 last week, indicating a drop of 16.97 points (3.6 percent) from 471.05 in the previous week. The index was fast approaching the year's low of 449.72. In trading on early Friday, Indosat shares fell to a low of Rp 7,300, close to its initial public offering (IPO) price of Rp 7,000, as a result of an erroneous rumor that the government is using Indosat IPO proceeds to repay state loans.

However, a senior executive of the company confirmed that the government is repaying the high-interest state loans using the money it received from divesting its Indosat shares to the public, not Indosat IPO funds. Prior to the listing, Indosat was 100 percent owned by the government with a total of 931.9 million shares. After the share issue and divestment of part of its shares, the government now holds about 65 percent of its enlarged capital.

Average daily turnover on the regular board increased to 12.51 million shares worth Rp 43.56 billion (US$19.84 million) last week from 8.76 million shares worth Rp 36.82 billion in the previous week.

Last week's total turnover also increased to 117.19 million shares valued at Rp 431.32 billion from 91.26 million shares valued at Rp 404.23 billion in the previous week.

On the last few days of last week, foreign investors were seen selling down their positions in all counters. Some of the counters were Indosat, Indocement, Indofood, Astra International, Gadjah Tunggal, BDNI, HM Sampoerna, Gudang Garam, Barito Pacific Timber, Tjiwi Kimia, and Indah Kiat. Local investors were actively selling HM Sampoerna, Gudang Garam, BDNI, Indosat, Indocement, Indofood, Tjiwi Kimia, SMART, Indah Kiat, Astra International and KIA.

Three companies were listed on the stock exchange last week. They were transport company Centris Multipersada Pratama, Keramika Indonesia Assosiasi and Indal Aluminium Industry. Anwar Sierad's one-for-one bonus issue was listed last week.

Despite weak market conditions, the stocks managed to close at or above their IPO prices on their listing days.

Some of last week's best performers were Surya Toto (up Rp 400), Hotel Sahid Jaya (up Rp 225), Langgeng Makmur (up Rp 150), Bank Tiara (up Rp 125), Alkasa, Pan Brothers and Super Indah Makmur (up Rp 100 each). The biggest losers were Merck (down Rp 3,000), Metro Supermarket (down Rp 2,200), SS Gas (down Rp 1,875), Ultra Jaya (down Rp 1,600) and Modern Photo (down Rp 1,600). Losers outnumbered gainers by 78 to 19, while 78 remained unchanged.

-- By Sigma Batara