Weak dollar pulls stock prices down

Weak dollar pulls stock prices down

JAKARTA (JP): Share prices fell on the Jakarta Stock Exchange (JSX) last week as investors remained concerned over the weak U.S. dollar.

The index dipped to a mid-week low of 425.22 from the week's opening of 432.73, before rebounding slightly on Thursday.

However buying forces failed to support the market as the index was dragged down by the weak sentiment in regional bourses.

The JSX Composite Index closed last week at 426.67, down 6.06 points (1.40 percent) from the week's opening.

There were also fears that the strong yen will result in higher inflation in the region, which relies heavily on imports from Japan. Meanwhile, better-than-expected economic data recently released in the United States added to the market's uncertainty, due to speculation on the possibility of another interest rate hike by the Federal Reserve.

Trading during the week was moderate, with investors picking up selected counters which had been heavily sold earlier. Over the short term, it appears that the market will continue to fluctuate within a narrow trading range.

Domestic players' activities continued to be concentrated on second liner stocks. Counters actively traded included BDNI, Barito Pacific, Lippoland, Duta Anggada, Pakuwon Jati, JIHD, PSP, Mulialand and Dharmala Intiland.

Foreign players were buying up blue chip stocks at the end of the week. Counters which saw active trading by foreigners included HM Sampoerna, Indosat, Indofood, BDNI, Lippo Bank, BII, SMART, Gadjah Tunggal, PSP, Duta Anggada and Tjiwi Kimia.

Average daily turnover on the regular board decreased to 11.43 million shares, worth Rp 36.71 billion (US$16.58 million), from 13.54 million shares, worth Rp 38.36 billion, in the previous week.

Last week's total turnover also decreased to 99.04 million shares, valued at Rp 324.77 billion, from 106.97 million shares, valued at Rp 474.43 billion, in the previous week.

Some of last week's best performers were Indorama (up Rp 850), Steady Safe (up Rp 800), HM Sampoerna (up Rp 400), Ciputra Development (up Rp 300) and Texmaco Jaya (up Rp 200). The biggest losers were P&G Ind. (down Rp 3,500), Bank Bali (down Rp 950), Unilever (down Rp 750), Gudang Garam and Tigaraksa (each down Rp 700). Losers outnumbered gainers by 71 to 29, while 78 remained unchanged.

-- Sigma Batara