Mixed stock trading seen for JSX in coming week
Mixed stock trading seen for JSX in coming week
Agence France-Presse, Jakarta
Indonesian share prices are expected to trade mixed in the coming week in quiet business after a record-breaking session Thursday, dealers said on Friday.
"Next week, I don't expect heavy transactions in our market," said Budi Ruseno, research analyst at Bhakti Capital Securities.
"I don't see enough positive news, domestically and regionally, that can move the index even higher," he said, adding that investors would most likely focus on short-term trading.
Jakarta shares have hit record highs in recent weeks on a generally positive outlook for the economy despite the devastating Dec. 26 earthquake and tsunamis in Aceh.
Government officials have painted a promising economic outlook for 2005, with growth forecast at between 5.0 and 5.5 percent.
International investors have welcomed the government's campaign to crack down on corruption and other efforts to restructure the economy.
Analysts said the market had largely expected Thursday's pledges of US$2.8 billion in fresh loans from the country's main western creditor group, the Consultative Group on Indonesia (CGI).
However, this still contributed to a feel-good factor which pushed the benchmark index to a record high 1035.747.
The Jakarta Stock Exchange composite index closed the holiday- shortened week to Jan. 20 at 1,035.747, up 14.08 points or 1.4 percent.
The stock market was closed Friday for the Idul Adha (Day of Sacrifice) Muslim holiday.
Daily average volume totaled 4.11 billion shares worth Rp 1.86 trillion (US$204 million) compared to 1.94 billion shares worth Rp 1.74 trillion the previous week.
Meanwhile, Singapore stocks could get a boost next week from speculation over state-linked developer CapitaLand's involvement in the government's proposed casino project, dealers said.
"That's the key thing -- speculation on the casino project will probably continue following CapitaLand's announcement of its tie-ups with international casino players," a local analyst said.
The property firm announced Thursday that it would team up with U.S. casino giants Kerzner International Ltd. and MGM Mirage to submit proposals for separate resorts on southern Sentosa island and the Marina Bayfront area near the financial district.
Tourism generated an estimated $9.6 billion in tourism receipts in 2004. A record 8.3 million people, or 6 percent of all visitors to the Asia-Pacific region, paid a visit to the country last year.
The island-state, however, faces increasingly aggressive competition for tourist dollars from neighboring countries such as Thailand and Malaysia, which has prompted the government to consider the casino project despite the misgivings of various interest groups.
On the stock exchange, analysts warned that the local bourse has been rising too high recently and was due for consolidation soon.
For the week to Jan. 20, the Straits Times Index rose 3.05 points or 0.15 percent to finish at 2,085.39.
Over a four-day week of trading, average daily volume totalled 1.11 billion shares worth S$852 million (US$522 million) after 822 million shares worth S$710 million the previous week.