Weekly review of Jakarta Stock Exchange

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.