Positive market sentiment to drive stock index up<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Positive sentiment in the local stock market is expected to
\nprevail next week although profit-taking in certain stocks would
\nlimit the upside potential, an analyst said.<\/p>\n
Prasti Rindrawati, a dealer with a Jakarta-based securities
\nfirm, said that the index still had good chance of climbing on
\noptimism that the world economy would be back on track toward
\nrecovery, which would eventually benefit the Indonesian economy
\nand corporate sector.<\/p>\n
\"As fears of a long war in Iraq have now subsided, market
\nplayers are feeling relieved because now at least one uncertainty
\nhas gone.<\/p>\n
\"It was the trend last week and I think it will remain so this
\nweek. Not as sharp as last week because profit-taking will also
\ntake place,\" Prasti told The Jakarta Post on Sunday.<\/p>\n
Following the U.S.-led occupation of Baghdad, the Jakarta
\nComposite Index, chasing the upward trend posted by world
\nmarkets, last week jumped by more than 8 percent to close at
\n438.55 points, compared to the previous week's when it ended at
\naround the 400 level.<\/p>\n
Last week's daily volume also increased threefold compared to
\nthe previous week, averaging 665.6 million shares worth Rp 639.2
\nbillion (US$71.8 million) per day, up from 207.14 million shares
\nworth Rp 177.482 billion.<\/p>\n
Although the trend was likely to continue, Prasti cautioned
\nthat profit-taking would limit the gains achieved: \"Profit-
\nhunters will need to cash in their gains from last week. Still,
\nthe index should manage to climb by around 1 percent.\"<\/p>\n
However, rising fears associated with Severe Acute Respiratory
\nSyndrome (SARS) still had the potential to deflate the optimism,
\nshe added.<\/p>\n
The economic impact of the disease on the global economy could
\nbe enormous, economists said, especially as the disease was most
\nprevalent in countries that had been enjoying solid economic
\ngrowth, such as China, Hong Kong and Singapore.<\/p>\n
If China's economy slowed down because of SARS, it would
\neventually further damage the already fragile world economy.<\/p>\n
Turning to the currency market, the rupiah is expected to
\nremain firm against the U.S. dollar this week, maintaining its
\nsolid performance over the past few weeks, a dealer said.<\/p>\n
\"Even during the war, when there were widespread fears of
\nviolent rallies here, the rupiah remained steady,\" he pointed
\nout.<\/p>\n
He expected the local unit to hover next week at between Rp
\n8,850 and 8,900 against the dollar, not much different from the
\ncurrent range. The rupiah closed last week slightly stronger at
\n8,876 against the U.S. dollar, compared with 8,885 the week
\nbefore.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/positive-market-sentiment-to-drive-stock-index-up-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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