JCI seen little changed this week<\/p>\n
Agence France-Presse
\nJakarta<\/p>\n
Jakarta share prices are likely to drift in a narrow range
\nwith few investors willing to take fresh positions ahead of the
\nIndependence Day holiday and with concerns over oil prices
\ncontinuing to weigh on sentiment, dealers said<\/p>\n
For the week ended Aug. 13, the Jakarta Stock Exchange
\ncomposite index up 0.26 percent at 755.920.<\/p>\n
Average daily turnover for the week was Rp 546.9 billion
\n(US$59 million) compared with Rp 600.2 billion a week earlier.<\/p>\n
\"We cannot expect too much positive movement of the index,\"
\nArianto Reksoprodjo, a senior analyst with Trimegah Securities,
\nsaid noting that many investors would prefer to stay on the
\nsidelines ahead of Tuesday's Independence Day holiday and against
\na backdrop of high oil prices and renewed rupiah weakness.<\/p>\n
Elsewhere in Tokyo, Japanese share prices are expected to
\nrebound this week, recovering from sharp sell-offs sparked by
\nrecord high oil prices and weaker-than-expected growth data,
\ndealers said.<\/p>\n
They said Friday's selling in the wake of the June quarter
\ngross domestic product (GDP) data appeared to be overdone.<\/p>\n
For the week ended Aug. 13 the Tokyo Stock Exchange's
\nbenchmark Nikkei-225 index fell 215.37 points, or 1.96 percent,
\nto close at 10,757.20, its lowest finish since May 18. The
\nbroader TOPIX index of all first section shares fell 10.31 points
\nor 0.93 percent to 1,096.81.<\/p>\n
\"Investors overreacted to the poor GDP findings. The June GDP
\ndata alone do not mean Japan's economic recovery has hit a snag
\nand I expect investors to buy back shares next week,\" said
\nShinichiro Kobayashi, senior market analyst at UFJ Institute,
\nadding the Nikkei index could rebound to around the 11,000-points
\nlevel.<\/p>\n
However surging oil prices and worries about their impact on
\nglobal demand including the technology sector would cap any
\nrebound said Mitsuhiro Nakano, senior market strategist at Daiwa
\nResearch Institute,.<\/p>\n
\"High oil prices are a big negative factor because it could
\nreally slow down the Japanese economy,\" Nakano said.<\/p>\n
Meanwhile in Hong Kong, shares are expected to trade higher
\nnext week on expectations of strong corporate results from some
\nleading companies, dealers said.<\/p>\n
Big blue-chip firms, including Cheung Kong, China Mobile and
\nHutchison, will report their interim results next week.<\/p>\n
However the upside will be capped by weakness on Wall Street
\nand ongoing concerns about record high oil prices, dealers said.<\/p>\n
Investors are also skittish over rising oil prices which have
\nhurt Wall Street and most regional markets in recent days.<\/p>\n
The key Hang Seng Index lost 118.85 points, or 0.95 percent,
\nover the past week to close Friday at 12,359.83.<\/p>\n
\"The sentiment in the Hong Kong market isn't bad but high oil
\nprices have dampened investors' confidence,\" said DBS Vickers
\ndirector Peter Lai said.<\/p>\n
\"Given the expected strong performance from corporate results,
\ninvestors are cautiously optimistic for the market outlook next
\nweek,\" he said.<\/p>\n
Investors will also be closely watching the release of key
\nU.S. data in the coming week for for further clues on the health
\nof the American economy.<\/p>",
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