Weekly review of Jakarta Stock Exchange

By Sigma Batara

JAKARTA (JP): The JSX index plunged 18.24 points from the previous week to 486.73 last week while most major players were attending the Indonesian Capital Market Conference in Jakarta. Local profit takers turned into panic sellers when it became apparent that few buyers could be found in the market.

With the absence of most major foreign investors in the stock market, average daily volume of transactions was low, and the market was illiquid and unpredictable.

The general market sentiment was weak as there were market rumors that the central bank has plans to increase state bank deposit rates, and investors are looking forward to a number of attractive initial public offering (IPO) issues being offered at considerable discounts to current market price.

The inflation rate of 0.5 percent for May released by the government on Thursday is in line with general expectations. The accumulative inflation rate of 4.5 percent for the first five months of 1994 was lower than last year due to the oil price hike in January 1993.

Confidence

However, investors are generally confident in the Indonesian stock market as companies continued to report favorable first quarter 1994 results.

Average daily turnover on the regular board decreased to 8.60 million shares, worth Rp 39.24 billion (US$18.20 million) compared to 15.88 million shares, worth Rp 72.23 billion (US$33.52 million) the previous week. Total turnover for the week also decreased to 78.02 million shares, valued at Rp 354.13 billion (US$164.25 million) from 109.15 million shares, valued at Rp 514.34 billion (US$238.67 million) the previous week.

Foreign investors were relatively inactive last week except for a few sizable cross transactions. A foreign broker said that foreign investors are waiting for the market to consolidate further before moving back into the Indonesian market.

Some of the actively traded counters by foreign investors were HM Sampoerna, Kabel Metal, UIC, JIHD, Barito Pacific, Gadjah Tunggal, Argha Karya, Sumalindo, BDNI, Tjiwi Kimia, Indorayon, Smart and the newly listed Putra Sejahtera Pioneerindo.

Most local investors are planning to liquidate their stocks to participate in the four upcoming IPO issues in June. They were visibly active in Super Mitory, JP Steel, Bank Danamon, Dharmala Sakti Sejahtera, Gudang Garam, Dharmala Intiland, Mas Murni Indonesia, JIHD, Surabaya Agung, INCO, Pan Brothers, BDNI and Ganda Wangsa.

Putra Sejahtera Pioneerindo and Super Indah Makmur made their debuts on the JSX last week. Putra Sejahtera Pioneerindo, franchiser of California Fried Chicken fast-food chain, offered 9 million shares at Rp 5,100 per share, and Super Indah Makmur, a plastic company, offered 5 million shares at Rp 2,075 apiece. Citra Tubindo's 1-for-2 rights issue went last week at an exercise price of Rp 3,500 per share.

Among the week's best performers were Dankos Labs (up Rp 700), Ultra Jaya (up Rp 700), Bakrie Brothers (up Rp 525), Gudang Garam (up Rp 450), and Multi Bintang (up Rp 300). The biggest losers were Bank International Indonesia (down Rp 1,250), Delta Jakarta (down Rp 1,100), Voksel Electric (down Rp 1,050), Unilever (down Rp 1,000), and Astra International (down Rp 850). Predictably, losers outnumbered gainers by 85 to 23, while 41 remained unchanged.