Strong sentiment pushes up JSX shares

JAKARTA (JP): Stocks closed higher across the board last week as the market picked up on strong local sentiment and the rise in New York and other bourses in the region despite the absence of strong foreign support, with many foreign players being the net sellers throughout the week.

The Jakarta Stock Exchange (JSX) Composite Index closed the week at 466.73, up 7.95 points or 1.73 percent from 458.78 in the previous week.

Four new comers entered the market last week. They were Paper producer Fajar Wisesa, car audio maker Jeewon Jaya Indonesia, Garment producer Karwell and cocoa processor Davomas Abadi.

The new listings suffered from strong foreign and local selling. They closed below their offering prices, with the exception of Jeewon which closed unchanged.

Over the short term, the upward momentum lacked the needed drive, as the market is expected to correct itself, with local investors cashing out for the holiday season.

Market sentiment is expected to be weak in the coming weeks due to the anticipation of another U.S. dollar interest rate hike in January. Foreign players are expected to remain sidelined.

Bank Tiara's one-for-one rights shares were listed last week at Rp 1,000 each.

The average daily turnover on the regular board increased to 13.16 million shares worth Rp 42.82 billion (US$19.47 million) last week from 10.73 million shares worth Rp 39.53 billion in the previous week.

Last week's total turnover for the week also increased to 208.34 million shares valued at Rp 678.39 billion from 125.96 million shares worth Rp 461.14 billion in the previous week.

Local players dominated the buying position. However, they were taking profits towards the week's closing.

Foreign players still largely dominated the selling positions. However, some ventured in and took a short term stance in the market. Stocks which were actively traded included Indosat, Astra Int'l, Japfa Comfeed, Kalbe Farma, Gudang Garam, H.M. Sampoerna and Indocement.

Some of last week's best performers were Mayora Indah (up Rp 1,100), Gudang Garam (up Rp 925), Kalbe Farma (up Rp 700), SS Gas (up Rp 625) and Semen Gresik (up Rp 600). The biggest losers were Unilever (down Rp 2,250), Anwar Sierad (down Rp 1,350), Ekadharma (down Rp 1,200), Roda Vivatex (down Rp 1,000) and Modernland Realty (down Rp 675). Gainers outnumbered Losers by 62 to 50, while 31 remained unchanged.

-- Sigma Batara