Stocks prices inched up 0.4% in quiet trading
JAKARTA (JP): Stock prices on the Jakarta Stock Exchange (JSX) edged up by only 0.4 percent yesterday in a very quiet trading as most foreign investors continued to sideline.
"Today's increase doesn't mean that the market has regained investors' confidence. Foreign investors are net sellers today, meaning that they are still cautious to make a quick come-back," a dealer with a London-based securities company told The Jakarta Post.
Meanwhile, the rupiah remained volatile yesterday despite a slight increase in the midday trading, with money market players mostly taking a wait and see stance.
Foreign exchange dealers said the Indonesian currency slipped back against the American greenback to 2,352 at the opening from Tuesday's close of 2,348 following a rumor of a fresh demonstration at the disputed headquarters of the Indonesian Democratic Party (PDI).
The JSX composite index inched up 2.55 points to close at 536.03 points with decliners outnumbering gainers 52 to 36.
"Today's relatively stable situation on the JSX is just in tune with a recovery in regional markets," the dealer added.
Another dealer with a Japanese brokerage viewed that the major contribution for yesterday's price increase was a technical rebound on Telkom, triggered by a higher closing on New York Stock Exchange on Tuesday.
The dealer said that Telkom's share prices rose from US$26.25 per one American Depository Shares (ADS) on Monday's close to $26,75 on Tuesday.
Telkom share prices on the JSX increased Rp 50 to close at Rp 3,225 yesterday with 3.6 million shares changing hands.
The JSX recorded total transactions of 102.5 million shares valued at Rp 262.4 billion as compared to Tuesday's figures of 172 million shares worth Rp 310 billion.
Cigarette maker HM Sampoerna rose Rp 300 to Rp 21,800 while Gudang Garam unchagned at Rp 8,450.
Conglomerate Bimantara Citra increased Rp 75 to close at Rp 2,125 while toll-road developer Citra Marga stood at Rp 3,175.
"We didn't get a strong sign that a recovery has begun. Moreover, it is local investors who drive the market today. So, I would say that the market is likely to fluctuate in a very narrow range, whether up or down tomorrow," the dealer added.
But traders seemed more cautious on Mega supporter's possible reaction if the court denies Mega's lawsuit, scheduled to be tried today.."
"So, I would say that the market will need longer time to regain positive sentiment if any other mass riots happen following Mega's court hearing." he noted.
The rupiah edged up in the midday trading at a tight range of 2,348 and 2,350 as the rumor was proven untrue, the dealers said.
"The rupiah-dollar trading remains nervous but it is bit recovering now," a dealer at the Standard Chartered Bank said.
The rupiah-dollar trading is expected to remain slow in the next few days as most investors are likely to continue taking a wait and see stance, he said.
"We have to wait. As you know the market is still surrounded by a lot of uncertainty," another foreign exchange dealer said. (alo/hen)