JSX to take cue from election: Analyst

JSX to take cue from election: Analyst

Agence France-Presse, Jakarta

Indonesian stocks will take their cue this week from the
success or otherwise of Monday's general election, an analyst
said Friday.

The Jakarta Stock Exchange composite index closed Friday at
750.652, up 36.523 points or 5.1 percent from the previous
Friday.

Average daily volume was 1.27 billion shares worth Rp 779.55
billion (US$90.9 million) compared with 1.38 billion shares worth
Rp 707.3 billion the previous week.

"We hope that the election will take place smoothly and
peacefully since it could prop up the index. But if it is marred
by problems, we expect the index to drop quite significantly,"
said BNI Securities analyst Norico Gaman.

The market will be closed for the election on Monday.

If the election proceeds well, the market could experience a
limited technical rebound with the index testing the 755
psychological barrier, Gaman said.

A dealer with CIMB Niaga Securities said a relatively peaceful
election campaign in the past three weeks had boosted investors'
optimism on Friday, when the index rose 1.76 percent.

Meanwhile, Singapore shares are expected to continue their
modest gains this week, buoyed by the upbeat outlook for the
economy, dealers said Friday.

The benchmark Straits Times Index closed at 1,880.45 on
Friday, up 53.34 points, or 2.9 percent, from the previous week.
The index had risen for five straight trading sessions since
Monday.

"The market has been making small gains as people buy
selectively. The consensus is that the correction is over and
that the market should steadily regain itself from here onwards,"
a dealer with a local brokerage said.

He said however the gains will continue to be modest.

In Seoul, South Korea's stock market rally is likely to lose
steam ahead of the expiry of options contracts this week with
trade to turn volatile, analysts said Friday.

The market closed firmer at 883.69 points on Friday, boosted
by Wall Street's rebound and steady oil prices, dealers said.

Average daily volume in the week was 349.8 million shares
worth 2.06 trillion won (US$1.80 billion), compared with 338.14
million shares worth 2.13 trillion won the previous week.

In Hong Kong, share prices are expected to stabilize at the
support level of 12,600-12,900 as investors wait for more fresh
news to trade on, dealers said Friday.

"Lacking the impetus from fresh funds and news, local shares
will continue to move within a narrow range in the short term,"
Ben Kwong, research director at KGI Asia.

The Hang Seng Index gained 248.52 points or 2.00 percent to
end the week at 12731.76 Friday.

As the market sentiment continues to improve, investors are
expected to lock in profits, dealers said.

Japanese stocks are likely to gain on rosy domestic economic
prospects after hitting a 22-month high in the past week, barring
further gains by the yen against the dollar, brokers said.

The exchange rate was stable after the yen hit four-year highs
against the dollar Wednesday, raising concerns the rising
currency would make Japanese exports more expensive and hurt
profits at hi-tech firms and carmakers.

The market is watching whether the Japanese monetary
authorities will intervene in the currency market to sell yen
when "the neighborhood of 100 yen per dollar is in sight," Nomura
Securities said.

The benchmark Nikkei-225 index of the Tokyo Stock Exchange
rose 45.3 points or 0.38 percent to finish the week at 11,815.95,
the highest level since June 3, 2002.

Thai stocks were expected to remain on shaky ground this week
with concern lingering over unrest in the south and as trade
dries up in the run up to the traditional new year holiday,
analysts said.

The bourse made healthy gains to close out the past week with
a flourish after the index pulled back to a level where investors
could see value in the market, but domestic issues remain weighty
concerns, said Pat Pattaphongse, head of research at KGI
Securities.

The Stock Exchange of Thailand composite index jumped 27.87
points or 4.19 percent over the past week to close Friday at
693.12.

Tuesday is a public holiday in Thailand, thus narrowing the
trading week to four days.