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.