RI stocks seen strengthening in coming week
RI stocks seen strengthening in coming week
Agence France-Presse
Jakarta/Singapore
Indonesia's stock market is expected to strengthen further
this week after making a strong recovery in the past two days
from a week-long slump, an analyst said.
"It appears that the index can strengthen again next week, at
least strong enough to test the 770 psychological level," said
BNI Securities analyst Fitri Murniawati over the weekend.
She said attractive values for several blue chips such as
telecommunications, banking and cigarette stocks would help boost
the index.
Ficor Sekuritas Indonesia research analyst Chrisbiantoro also
said the market may sustain its rise in the coming week providing
the region does not slide into a steep correction. The Jakarta
Stock Exchange composite index closed Friday at 758.924, up 5.992
points or 0.8 percent on the previous Friday.
In Singapore, the shares are expected to trade in a narrow
band amid continuing concerns about the bird flu outbreak in Asia
and as the market consolidates.
Singapore Telecommunications may continue to shine after
announcing a stunning 188-percent surge in net profits for the
December quarter to S$854 million (US$505 million).
The Straits Times Index closed at 1,854.41 on Friday, up 6.05
points or 0.32 percent from the previous week.
In Seoul, Korean share prices will likely gain on renewed
foreign interest, expectations for the stabilizing won and a good
economic outlook, according to dealers.
Foreign investors' renewed buying sparked a sharp rebound in
the local bourse on Friday, bucking the downward correction trend
in the past week after the government's strong indication to
stabilize the won.
In Tokyo, Japanese shares are likely to move in a narrow range
with investors cautious towards aggressive buying due to concern
about the strong yen and supply-demand balance, brokers said over
the weekend.
"Foreign players, who led recent gains on the Tokyo market,
are now very cautious, shifting their funds from riskier shares
to defensive ones," said Norihiro Fujito, senior analyst at
Mitsubishi Securities.
Last week, the Tokyo Stock Exchange's Nikkei-225 index lost
322.69 points or 2.99 percent to 10,460.92 after a 2.0 percent
decline the preceding week.
Meanwhile, the avian flu scare is expected to pose less of a
threat to the Hong Kong stock market as investors turn their
attention to the earnings season in the banking sector.
Hong Kong share prices closed sharply higher on Friday led by
a rally in property stocks thanks to a pick-up in sales of
recently-launched Hong Kong luxury residential units.
The rise was achieved after the shares plunged below the key
13,000 mark on Monday, as investors dumped stocks across the
board following news of the first suspected human-to-human
transmission of the bird flu virus in Thailand.
As for Thai stock market, the index is expected to remain
under pressure from the bird flu outbreak, following the volatile
trade of recent sessions and as regional news emerges about the
virus.
Sukit Udomsirikul, an analyst at Capital Nomura Securities,
said it was unlikely the bourse would emerge unburdened by the
health crisis that has already killed five people in Thailand and
sent the $1.2 billion chicken export business into a tailspin.
The flu factor had nearly subsided with a spate of stock
market gains Tuesday through Thursday but panic had set in Friday
with the Vietnam news, triggering concerns the disease could be
more easily transmitted to humans after infecting pigs.
The Stock Exchange of Thailand (SET) composite index gained
12.55 points, or 1.75 percent, over the past rollercoaster week
to close on Friday at 711.15.