Sustained rally pushes shares up
Sustained rally pushes shares up
JAKARTA (JP): Sustained rally from the preceding week lifted share prices on the Jakarta Stock Exchange (JSX) higher last week.
Last Tuesday saw the index reaching the week's high of 457.33, up by 2.8% from the week's opening. The upward momentum was however cut short by heavy profit taking by local investors.
The JSX composite index closed last week at 453.31, up 7.93 points (1.78 percent) from the previous week's close of 445.38.
The price surge early in the week was stimulated by a strong rise on Wall Street and bourses in the region.
Foreign investors took advantage of big cap stocks which were considered grossly undervalued. There were strong buying interests in Indocement after the company disclosed its plan to sell its subsidiary Bogasari Flour Mills to Indofood, its major subsidiary. The sale, expected to be financed through new share issues, should boost Indocement earnings in 1995 through Indofood. Minority shareholders of Indofood, however, showed their objection of the deal by dumping Indofood shares on the market. Further, conversion of Indofood Mandatory Exchangeable Bonds into 139 million shares caused some uneasiness among investors.
Pharmaceutical company Darya Varia was also bid up on old news of an acquisition of another pharmaceutical company.
This week the market is expected to take a cautious attitude, monitoring closely the reaction of Wall Street and the regional bourses on U.S. inflation data expected to be released during the week-end.
Average daily turnover on the regular board increased to 21.18 million shares worth Rp 70.68 billion (US$31.98 million) last week from 16.16 million shares worth Rp 42.00 billion in the previous week.
Last week's total turnover increased to 509.08 million shares valued at Rp 1,199.83 billion from 110.22 million shares valued at Rp 313.05 billion in the previous week.
Domestic players were mostly taking profit on gains from the week before. The counters which were actively traded by domestic players included Indosat, Kalbe Farma, BDNI, Indofood, Sampoerna, Indocement, Japfa, Jababeka, Indosat, Indah Kiat, Sumalindo, Dharmala Intiland, PSP and Duta Anggada.
Foreign players took positions mostly on selected large cap stocks. Among foreign players, the attractive counters were Indosat, BDNI, Indah Kiat, Tjiwi Kimia, BDNI, Sumalindo, Sampoerna, JIHD, Darya Varia, Citra Marga, Indofood and Indocement.
Some of last week's best performers were Darya Varia Lab (up Rp 1,625), HM Sampoerna (up Rp 1,000), Indocement (up Rp 775), Indosat (up Rp 525) and Indorayon (up Rp 500). The biggest losers were Kabelindo (down Rp 1,700), Jaya Real Property (down Rp 550), Ultra Jaya (down Rp 500), Panin Life and Medco Energi (down Rp 400 each).
Losers outnumbered gainers by 54 to 52, while 30 remained unchanged.
-- Sigma Batara