Iraq to keep haunting market: Analysts<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
Despite a 1.6 percent surge last week, the Jakarta Composite
\nIndex will be under pressure this week as lingering fear over
\npossible war in Iraq will push investors to the sidelines, a
\nstock analyst said.<\/p>\n
\"Lingering uncertainty in the Middle East will keep this
\nweek's trading in a thin range. Consequently, the index will not
\nmove in a drastic way, either up or down,\" the researcher at a
\nforeign-based securities firm said on Sunday.<\/p>\n
Last week, the index closed at 394.63 points, up 6.188 points
\nor 1.6 percent from the previous week's closing. Daily volume
\naveraged 172.34 million shares worth Rp 179.7 billion (about
\nUS$20.4 million), compared to 308.08 million shares at Rp 232.9
\nbillion the previous week.<\/p>\n
The analyst said last week's rise was due mostly to a late
\nsurge in selected blue chips as a result of bargain hunting by
\ninvestors.<\/p>\n
\"This helped lift the index. Although overall sentiment
\nremained bleak, the shares attracted investors with their
\nrelatively low prices,\" he said.<\/p>\n
He was quick to add, however, that this would unlikely be the
\ncase this week amid worsening global sentiment. \"A war has become
\nmore and more likely, with the U.S. looking determined for it.\"<\/p>\n
Economists have predicted a war in Iraq would create market
\njitters across the globe, further delaying a rebound in the
\nworld's economy. Some have even predicted war would prompt
\nanother round of global depression.<\/p>\n
\"Aside from that, as happened in the past, such a war would
\ninstigate radical movements here, which would further depress our
\nmarket,\" the analyst said.<\/p>\n
Following U.S.-led military attacks on Afghanistan in late
\n2001, anti-Western street rallies took place across the country.<\/p>\n
A number of militant groups also conducted \"sweeps\" of
\nforeigners, prompting several foreign firms to temporary halt
\noperations in the country.<\/p>\n
On the currency market, the rupiah is expected to remain flat
\nthis week, as speculators wait for progress in the U.S.-Iraq
\nconfrontation.<\/p>\n
\"If war breaks out, anti-U.S. rallies would crop up here,
\nwhich would hurt business confidence, thus putting heavy pressure
\non our currency.<\/p>\n
\"So I think players will be cautious this week, resulting in
\nflat movement of the rupiah,\" a stock dealer at a local brokerage
\nsaid.<\/p>\n
The rupiah closed last week at 8,870 against the U.S. dollar,
\nnot far from its 8,850 close the previous week.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/iraq-to-keep-haunting-market-analysts-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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