Jakarta stocks foreseen to strengthen this week
Jakarta stocks foreseen to strengthen this week
Agence France-Presse, Jakarta/Singapore
Indonesia's stock market is expected to strengthen further this week after making a strong recovery in the past two days from a week-long slump, an analyst said.
"It appears that the index can strengthen again next week, at least strong enough to test the 770 psychological level," said BNI Securities analyst Fitri Murniawati over the weekend.
She said attractive values for several blue chips such as telecommunications, banking and cigarette stocks would help boost the index.
Ficor Sekuritas Indonesia research analyst Chrisbiantoro also said the market may sustain its rise in the coming week providing the region does not slide into a steep correction. The Jakarta Stock Exchange composite index closed Friday at 758.924, up 5.992 points or 0.8 percent on the previous Friday.
In Singapore, the shares are expected to trade in a narrow band amid continuing concerns about the bird flu outbreak in Asia and as the market consolidates.
Singapore Telecommunications may continue to shine after announcing a stunning 188-percent surge in net profits for the December quarter to S$854 million (US$505 million).
The Straits Times Index closed at 1,854.41 on Friday, up 6.05 points or 0.32 percent from the previous week.
In Seoul, Korean share prices will likely gain on renewed foreign interest, expectations for the stabilizing won and a good economic outlook, according to dealers.
Foreign investors' renewed buying sparked a sharp rebound in the local bourse on Friday, bucking the downward correction trend in the past week after the government's strong indication to stabilize the won.
In Tokyo, Japanese shares are likely to move in a narrow range with investors cautious towards aggressive buying due to concern about the strong yen and supply-demand balance, brokers said over the weekend.
"Foreign players, who led recent gains on the Tokyo market, are now very cautious, shifting their funds from riskier shares to defensive ones," said Norihiro Fujito, senior analyst at Mitsubishi Securities.
Last week, the Tokyo Stock Exchange's Nikkei-225 index lost 322.69 points or 2.99 percent to 10,460.92 after a 2.0 percent decline the preceding week.
Meanwhile, the avian flu scare is expected to pose less of a threat to the Hong Kong stock market as investors turn their attention to the earnings season in the banking sector.
Hong Kong share prices closed sharply higher on Friday led by a rally in property stocks thanks to a pick-up in sales of recently-launched Hong Kong luxury residential units.
The rise was achieved after the shares plunged below the key 13,000 mark on Monday, as investors dumped stocks across the board following news of the first suspected human-to-human transmission of the bird flu virus in Thailand.
As for Thai stock market, the index is expected to remain under pressure from the bird flu outbreak, following the volatile trade of recent sessions and as regional news emerges about the virus.
Sukit Udomsirikul, an analyst at Capital Nomura Securities, said it was unlikely the bourse would emerge unburdened by the health crisis that has already killed five people in Thailand and sent the $1.2 billion chicken export business into a tailspin.
"There was a new negative factor in the market after a report that bird flu's H5N1 virus has been found in pigs in Vietnam, prompting fresh concern from investors," Sukit said.
The flu factor had nearly subsided with a spate of stock market gains Tuesday through Thursday but panic had set in Friday with the Vietnam news, triggering concerns the disease could be more easily transmitted to humans after infecting pigs.