Asia market expected to continue higher in this week: Dealers
Asia market expected to continue higher in this week: Dealers
Agence France-Presse, Jakarta
The Jakarta stock market, which rose 3.7 percent to close well above the key 600 points level last week, is likely to continue its rally in this week on bargain-hunting in second liners and positive domestic news, dealers said last week.
"For next week, the chance for the index to go up is still there due to bargain-hunting in second liners and positive domestic news," DBS Vickers Securities analyst Ahmad Amir said.
The Jakarta Stock Exchange composite index ended the week up 22.022 points at 621.862.
Amir said second liner stocks such as Bank Mandiri and Bina Danatama Financing Co. remain attractive to investors but warned that a technical correction could also take place next week.
He said the continuing fall in local interest rates should underpin sentiment.
Meanwhile, Singapore share prices are expected to continue firmer this week on signs the economy is rebounding but after the sharp recent run-up there is a risk a correction could limit gains.
The Straits Times Index rose to a 16-month high of 1,670.30 last week, up 42.76 points or 2.63 percent from the previous week.
News of a positive survey on business sentiment in the all- important manufacturing sector and expectations of a strong increase in output, possibly of up to 15 percent ahead of the key Christmas holiday season, could bolster sentiment.
In Tokyo, Japanese shares look set also to head higher as steady fund flows into the market appear unaffected by worries a strong yen will hurt Japanese exporters.
The Tokyo Stock Exchange's Nikkei-225 index gained 3.79 percent or 390.85 points last week to close at 10,709.29.
"Most market participants did not expect stocks to recover so quickly," said Hiroyuki Nakai, chief strategist with the Tokai Tokyo Research Center, after a 5.67 percent drop in the Nikkei- 225 the previous week.
"Next week I think the bullish tone will continue," he said. The Topix index of all first-section shares gained 4.49 percent or 45.80 points to 1,066.86 on the week, which saw massive trade volumes supported by upbeat expectations for continuing signs of a Japanese economic recovery.
South Korea's stock market is likely to extend the recent uptick into the coming week, with undervalued companies including IT and securities stocks leading the way, dealers said.
The market is now much more positive after finding strong support at 690 points in the past week, having slipped back badly in line with Wall Street initially, they said.
The market closed last week up 2.56 percent at 715.24 points Thursday. It was closed Friday for a public holiday.
In Kuala Lumpur, dealers also expected the Malaysian stock market to continue rangebound this week, with interest still lukewarm and few significant corporate developments to attract investors.
"Overall interest in water-related companies and the oil and gas sector have started to wane after the counters' recent strong run," said Victor Wan, senior analyst with Mercury Securities.
The Kuala Lumpur Stock Exchange's composite index gained nearly 6 percent in the third quarter, making it the weakest performer among regional bourses, he said.
The KLSE composite index lost 2.02 points or 0.27 percent during the week to close last week at 740.20 points.
The Thai stock market is expected to consolidate in the week ahead as investors wait for third quarter results from banks and finance companies due later this month, dealers said.
The Stock Exchange of Thailand (SET) composite index lost 22.53 points or 3.88 percent over the past week to close at 558.34.
In Hong Kong, local stocks are expected to range trade next week, as investors take a breather following recent solid gains to await more news and developments.
The key Hang Seng index gained 318.57 points, or 2.82 percent, to close the week at 11,608.72.