Indonesian market seen headed for correction in coming week

Indonesian market seen headed for correction in coming week

Agence France-Presse
Jakarta

Indonesia's stock market is headed for a correction in the
coming week after its 2.37 percent heady rise in the past week,
an analyst said on Friday.

"For next week, I suppose a little correction lies in store
because the market has strengthened significantly in the past
week. It is now time for some correction," said BNI Securities
analyst Noriko Gaman.

He said the combination of a strengthening rupiah, lower
interest rates, better regional performances and perhaps a fresh
inflow of capital into Indonesia were behind the significant
strengthening in the past week.

Gaman said some level of correction is necessary. "If shares
become too expensive quickly, there will not be much many buyers
around."

The Jakarta Stock Exchange composite index closed on Friday at
528.943, up 12.296 points from the previous on Friday.

Daily volume averaged 1.42 billion shares worth Rp 567.052
billion (US$67.66 million) compared with 695.6 million shares
valued at Rp 401.526 billion the previous week.