Stocks seen as flat this week<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
The Jakarta stock market is expected to move lower this week due
\nto a combination of domestic and international factors, according
\nto an analyst.<\/p>\n
\"The stock market is expected to be flat to lower as the
\nmomentum to jack up the stock index is over,\" stock analyst Eddy
\nS. Widjojo told The Jakarta Post over the weekend.<\/p>\n
On the international front, the Jakarta stock market could
\nremain under pressure this week amid jitters over a possible
\nattack on Iraq by the U.S.<\/p>\n
Eddy explained that the uncertainty triggered by the
\npossibility of an attack on Iraq was causing nervousness among
\nequity investors worldwide, prompting them to unload stocks.
\nThis had also affected the mood on the Jakarta stock market.<\/p>\n
On the domestic front, a recent financial fraud plaguing the
\nJakarta Stock Exchange had deterred investors from injecting more
\nfunds into the stock market.<\/p>\n
The financial fraud has centered on the manipulative
\ntransaction of shares of PT Dharma Samudera Fishing Tbk and PT
\nPrimarindo Asia Infrastructure Tbk., which dragged two local
\nbrokerage firms to default status.<\/p>\n
The alleged perpetrators have been detained by the police.
\nThe case has created negative sentiment among stock investors.<\/p>\n
\"The stock index is expected to hover around 400 to 410,\" Eddy
\nsaid.<\/p>\n
The Jakarta stock market has been in decline during the past
\nfour weeks. In early September, the Jakarta Stock Exchange
\ncomposite index fell to 427.8, continuing to fall to 421 and
\n408.79 in the following two weeks.<\/p>\n
The index rose slightly again to 412.97 last week. However,
\nshould Eddy's forecast prove correct, the index would fall again.<\/p>\n
Meanwhile, in the currency market, the rupiah was expected to
\nhover around the same level as last week, given a lack of fresh
\nleads, a currency analyst said.<\/p>\n
\"We haven't noticed any positive sentiment that could increase
\ninvestor appetite to buy the rupiah,\" said Wiwan Wiradjaja.<\/p>\n
Amid the absence of good news on the domestic front, Wiwan
\npredicted that investors would remain on the sidelines this week.<\/p>\n
As a result, the rupiah would be traded within a narrow band
\nof Rp 8,950 to Rp 9,100 per U.S. dollar.<\/p>\n
On Friday, the rupiah ended flat (at Rp 9,015) in quiet
\ntrading as Bank Indonesia continued to protect the local currency
\nfrom a rising dollar, boosted by demand from local companies, Dow
\nJones Newswires reported.<\/p>\n
Local companies, entangled in US$60 billion of offshore debts,
\nbought the dollar to pay maturing debts they had obtained from
\ninternational lenders prior to the 1997 Asian financial crisis.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stocks-seen-as-flat-this-week-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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