Strong results push up Inco shares on Jakarta Stock Exchange

The bullish performance of Inco shares on the Jakarta Stock Exchange continued in the past several weeks following the announcement of its better than expected financial results in the second quarter last month.

According to Robert J, Han, a senior analyst at Sigma Research, the price of Inco shares started its bullish performance following the release its second quarter result in late July.

The share price, which managed to break the psychological barrier of Rp 7,000 only few days following the release of the financial results, continued its upward trend in the following weeks and reached Rp 7,300 on Aug 2, or an increase of 16.24 percent from its yearend closing of Rp 6,275.

The price movement of Inco shares contradicted with the general trend in the market where most shares prices showed downward trend as reflected by the 27.55 percent fall in the JSX Composite Index during year, Robert wrote in an article published by Bisnis Indonesia on Monday.

The bullish sentiment indicated that investors did not worry about the demand made by the local legislators to review its nickel-mining contract in South Sulawesi.

He estimated that the upward trend in the Inco share prices would continue in the second semester of this year as the strong nickel prices in the world market would continue to give a positive impact to its financial results during the rest of the year.

In addition, to the rise in nickel prices in the world market, the weak rupiah would also give a positive contribution on its earnings in the second half of the year, he added. (*)