Stock market set for new 900 level: Analysts<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Jakarta Composite Index will likely increase to a new level
\nof over 900 points this week as the stock market continues to
\ngain further momentum from various positive sentiments, analysts
\nsaid.<\/p>\n
\"Such a level (900 points) is highly probable,\" Arwani
\nPradjaja of Mandiri Securities said on Sunday. \"Our prediction is
\nthat the market could even reach 906 points over the week.\"<\/p>\n
Analyst Lorensius Chrisbiantoro of BCI Securities was quoted
\nby AFP on Friday as saying that the index could break the 900
\nlevel with investors mostly focusing on second-liner stocks.<\/p>\n
\"There is still a chance for the index to continue rising due
\nto the euphoria in regional markets following President Bush's
\nvictory and a drop in global oil prices,\" Lorensius said.<\/p>\n
The index has risen from 863.59 points last Monday to 893.63
\npoints last Friday, or less than 7 points below the
\npsychologically important 900-point level.<\/p>\n
The highest gain occurred last Tuesday, when it jumped 17
\npoints to 881.396, with the only exception to the trend last
\nThursday, when it slipped slightly to 888.33 points from 890.36
\npoints.<\/p>\n
Friday's closing level for last week showed an increase of
\n3.85 percent from 860.48 points the previous week.<\/p>\n
Last week's average daily volume at the Jakarta Stock Exchange
\n(JSX) reached 1.54 billion shares worth Rp 1.56 trillion (US$172
\nmillion), compared to 1.46 billion shares worth Rp 1.01 trillion
\nthe previous week.<\/p>\n
Besides the ongoing positive sentiment from companies' strong
\nthird-quarter performance reports, Arwani said the other main
\ncontributing factor was the stability of the rupiah exchange rate
\nagainst the dollar over the month.<\/p>\n
\"It has created a particularly suitable situation for the
\nstock market to grow,\" he said.<\/p>\n
Arwani also said the government's plans to sell more of its
\nminority shares in several banks would also positively affect the
\nmarket sentiment over the week.<\/p>\n
The government sold on Thursday 10 percent of its shares in
\nBank Danamon for Rp 1.74 trillion, which helped boost last
\nFriday's trading to 1.4 million shares worth Rp 2.8 trillion.<\/p>\n
Meanwhile, the finance ministry's Asset Management Company
\n(PPA) affirmed on Friday that it would sell 20 percent of
\ngovernment shares in Permata Bank in mid-December.<\/p>\n
Commenting on the U.S. presidential outcome, Arwani said it
\nwould not further affect the market, which had already
\nanticipated who would win.<\/p>\n
During a visit to the JSX last week, Minister of Finance Yusuf
\nAnwar said the market index would reach the 900 level. He was
\neven optimistic that it would only be a matter of time before the
\nbourse reached a 1,000-point level, as long as the government
\nkept working hard to create a suitable condition for investors.<\/p>\n
Arwani was, however, careful in forecasting whether the
\ncurrent momentum was enough to drive the market to the 1,000-
\npoint level.<\/p>\n
\"Many have indeed begun talking about the 1,000 level, but we
\ncannot be too sure of that yet,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stock-market-set-for-new-900-level-analysts-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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