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.