(Bloomberg) -- Shares of PT Delta Dunia Petroindo, an Indonesian property company, may fall after gaining in the past month as the value of the stock sold exceeded the value bought, a money-flow analysis showed. Delta jumped 63 percent in the month ended Sept. 4, compared with a 1.6 percent drop in the Jakarta Composite index. Investors sold a net 16.2 billion rupiah ($1.6 million) of the stock during that time, data compiled by Bloomberg showed.Delta Dunia’s plan to buy PT Bukit Makmur Mandiri Utama, a coal-mining contractor whose sales in 2008 were 700 times higher than its own revenue, helped boost its shares. The acquisition is valued at $550 million, Delta Dunia said on Aug. 28.
“The money outflow indicates buyers aren’t aggressive anymore,” Rafdi Prima, a technical analyst at PT Mandiri Sekuritas in Jakarta, said in an interview today. “It’s a signal to be careful.” Delta Dunia, which is changing its name to PT Delta Dunia Property, fell 1.5 percent to 1,960 rupiah as of 10:13 a.m. in Jakarta trading, the biggest drop in more than a week.
Money-flow generally confirms price trends. As prices rise, money flows are usually positive, and as prices fall, money flows are usually negative. A divergence between money flow and price trend may indicate a future price trend change.The money flow analysis was pioneered by Laszlo Birinyi, who spent a decade on the trading desk at Salomon Brothers Inc. and is the founder of Connecticut-based research and money- management firm Birinyi Associates Inc.
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