Mining stocks still under selling pressure
Wednesday, March 7 2001 - 04:30 AM WIB
Selling pressure hit mining stocks listed on the Jakarta Stock Exchange (JSX) last week. Trading of mining stocks was active, but mining stock prices dropped by 1.61 percent for the whole week.
Total stock trading reached 17.770 million, valued at Rp 24.573 billion. Only INCO stock book a slight gain of 0.64 percent, but five other mining stocks dropped.
Consequently, mining stock index dropped by 5.10 percent to 66.212 points, from 69.771 points recorded in the previous week. This is consistent with the 2.8 percent drop in the JSX Composite Index to 426.127 points from 438.646.
Mining sector, one of the sectors contributing significantly to national development finances, is beset by legal uncertainties, following the massive regional autonomy drives. Such uncertainties have prevented investors to purchase mining stocks on the JSX.
However, this mining sector is expected to perform better as mining companies earn their earning in U.S. dollar, a lucrative business in time of the weakening rupiah. (*)