Jakarta's market to higher

Jakarta's market to higher

Agence France-Presse, Jakarta

Indonesia's stock market, which rose 2.3 percent last week, is likely to strengthen further this week on third-quarter window- dressing and attractive valuations in blue chips, analysts said on Friday.

"The index is still strong enough to go up next week because of window-dressing and attractive values of several blue chips," BNI Securities analyst Noriko Gaman said.

The Jakarta Stock Exchange composite index ended on Friday at 672.292, up 15.552 points or 2.3 percent from the previous Friday.

Average daily volume was 1.72 billion shares valued at Rp 1.03 billion (US$120.88 million) compared with 1.86 billion shares valued at Rp 883.14 billion the previous week.

Gaman said several blue chips such as Telkom, cigarette maker Gudang Garam and Unilever would remain attractive for investors.

Interasia Sekuritindo analyst Didi Kurniawan also said the market should remain on an upward trend and possibly close the year within a range of 675-680.

In Tokyo, the Japanese stock prices are expected to trade in a narrow range this week with investors likely to be on the sidelines ahead of upcoming holidays.

"The market will lack energy next week as players are expected to avoid building up long-positions ahead of the Christmas and New Year's holidays," said Kiyoshi Saito, a broker at Cosmo Securities.

"Foreign investors, who led this year's upturn on the Tokyo market, have virtually closed up shop for the year," said Saito.

For the week just ended, the Nikkei 225-index on the Tokyo Stock Exchange gained 114.88 points or 1.13 percent to end at 10,284.54, following a 1.96 percent decline the previous week.

Dealers said they expect the benchmark index to trade between 10,000 and 10,500 next week. Financial markets in Tokyo will be closed on Tuesday for the Emperor's Birthday public holiday.

In Seoul, South Korean shares will continue firmer this week on foreign interest driven by hopes for strong year-end corporate dividends and a better economic outlook. The composite index, last week, rose 0.64 percent.

In Hong Kong, stocks will see slow trade this week as investors take a breather to digest gains on the recent flurry of initial public offerings (IPO) by mainland Chinese firms. The market lost 222.67 points, or 1.77 percent, in the past week to close at 12,371.75 on Friday.

In Kuala Lumpur, further weakness is expected on Malaysia's stock market after a woeful week that saw the key index plunge 2.8 percent.

The Kuala Lumpur Stock Exchange composite index lost 22.19 points in the past week to close Friday at 769.75.

In Bangkok, the Thai stock market is tipped to extend its gains this week after smashing through the 700-point barrier in a rally that took it to levels not seen for six and a half years.

Investors bought across the board to drive the Stock Exchange of Thailand (SET) composite index up 34.70 points or 5.15 percent over the past week to close on Friday at 709.15.

In Singapore, shares are in for an uncertain trading period this week as Asia waits to see if Severe Acute Respiratory Syndrome (SARS) makes a comeback after a Taiwanese man became infected with the deadly virus.

The Straits Times index closed the week at 1,710.81 points, down 16.92 or 0.98 percent from the previous week.

In Taipei, Taiwan shares are likely to stage a technical rebound this week ahead after recent losses spurred by fresh SARS concerns.

The latest infection sent the weighted index plunging 99.09 points or 1.69 percent over the week to finish at 5,759.23, after a 0.71-percent decline.

In Manila, Philippine share prices are expected to correct this week after hitting six-week highs. The Philippine Stock Exchange composite index rose 2.73 percent or by 38.92 points over the week to close at 1,422.24 points on Friday.