RI shares seen lower this week on oil fears, weak rupiah
RI shares seen lower this week on oil fears, weak rupiah
Agence France-Presse, Jakarta
Jakarta shares, which dipped slightly this week, are set to
post further losses this week with concern over oil prices and a
weak rupiah continuing to weigh on sentiment, an analyst said on
Friday.
The Jakarta Stock Exchange composite index closed the holiday-
shortened trading week to Aug. 20 down 5.45 points, or 0.72
percent, at 750.472.
Average daily volume was 431.52 million shares worth Rp 363.32
billion (US$39 million) compared with 890.2 million shares worth
Rp 546.9 billion the previous week.
"There should be a technical correction this week because
market sentiment remains pretty weak due to the surging prices of
oil and a weakening rupiah," said Muhammad Reza, an analyst with
Kuo Capital Raharja Securities.
The continuing rise in global oil prices will cause investors
to closely watch oil and cement stocks, Reza said.
Elsewhere in Tokyo, Japanese share prices are likely to post a
mini rally on bargain-hunting in this week although rising oil
prices are expected to cap gains, brokers said Friday.
Investors were "likely to pick up bargains, believing the
market has already hit a temporary bottom," said Kazuhiro
Takahashi, equity planning division chief at Daiwa Securities
SMBC.
For the week just ended the Tokyo Stock Exchange's benchmark
Nikkei-225 index gained 131.94 points or 1.23 percent to close at
10,889.14 after a 1.96 percent drop in the preceding week.
The broader TOPIX index of all first section shares rose 13.03
points or 1.19 percent to 1,109.84.
"Market participants may test the 11,000 level of the Nikkei
index," Takahashi said, reflecting optimism shared among some
investors that oil prices would soon peak out to help boost the
US and Japanese stock markets.
In Seoul, South Korean share prices are likely to weaken in
lackluster trading in this week with the local bourse under
pressure from rising oil prices.
The country's main index closed up 1.5 percent over the week
to close at 787.64 Friday, after the central bank's rate cut and
better-than-expected economic growth for the second quarter to
June.
In Bangkok, continued anxiety over surging oil prices will
dominate a lacklustre Thai stock market this week but analysts
said they still hope the index could bounce above the 600 points
level.
The Stock Exchange of Thailand (SET) composite index gained
9.68 points or 1.65 percent over the past week to close at
598.55.
In Kuala Lumpur, Malaysian share prices could steady this
week, after falling for the past five weeks, despite the
continuing surge in oil prices and an outbreak of bird flu.
The Kuala Lumpur Stock Exchange composite index closed the
week to Friday lower by 7.15 points at 808.47 from 815.62.
In Taipei, Taiwan share prices are expected to continue their
recent uptrend this week as investors build their portfolios
despite lingering concerns about surging oil prices and terror
attacks.
The weighted index rose 232.93 points or 4.32 percent in the
past week to end at 5,622.86.
In Singapore, share prices are likely to decline this week
with sentiment undermined by further record setting price rises
for crude oil.
For the week ending Aug. 20 the benchmark Straits Times Index
closed up 22.05 points, or 1.18 percent at 1,894.93 points.
In Hong Kong, share prices are expected to drift in a narrow
range as investors remain wary in the wake of continued increases
in the price of crude oil.
For the week ended, the benchmark Hang Seng Index gained 17.1
points, or 0.14 percent, to 12,376.9 points.