Stocks unlikely to move up in coming week: Analyst

Stocks unlikely to move up in coming week: Analyst

Agence France-Presse, Jakarta

The Jakarta stock market is unlikely to recover lost ground in
the coming week after slumping more than four percent in the past
week, an analyst said on Friday.

Kuo Capital Raharja Securities analyst Edwin Sinaga said he
expected the market to move sideways in the coming week due to
concerns about possible violence before the start of election
campaigning on March 11.

"The market is somewhat worried about the potential for
violence during next month's campaign period. I expect these
concerns to carry over until next week and these could prompt
investors to move sideways," he said.

"If there is a rise, it will not be significant since it will
probably be caused by a technical rebound," Sinaga said.

The Jakarta Stock Exchange composite index closed Friday at
761.081, down 33.386 points or 4.2 percent from the previous
Friday.

Average daily volume was 3.3 billion shares worth Rp 1.39
trillion (US$164.9 million) compared with 4.9 billion shares
worth Rp 1.5 trillion the previous week.

Meanwhile, other Asian stock markets gained ground Friday on a
mixture of corporate, economic and political news as investors
ignored Wall Street's mixed performance.

There was no single factor which prompted investors in Asia to
buy, but most of the region's major markets finished the day
higher after recent positive corporate results and economic data.

A number of upcoming elections in Asia also led to buying.

Japanese share prices closed 2.10 percent higher as robust
industrial output and spending data boosted sentiment while a
firmer dollar eased concerns a strong yen could hurt exporters.

The Tokyo Stock Exchange's Nikkei-225 index hit a five-week
high, up 226.63 points at 11,041.92, closing above the 11,000
mark for the first time since January 23. The broader Topix index
of all first section shares gained 22.44 points or 2.12 percent
to 1,082.47.

"Investors interpreted the upbeat January industrial output
data to mean that Japan's economic recovery remains on a steady
path and reacted to the data by putting money into domestic
demand-related stocks," said Nagayuki Yamagishi, senior
strategist at UFJ Tsubasa Securities.

Japan's industrial output in January rose 3.4 percent from
December and was up 5.0 percent from a year earlier, the trade
ministry said Friday.

Retail figures chugged along in recent releases, raising hopes
the sector that has lagged behind manufacturers in the current
economic expansion cycle may be crawling out of a long slump.

Spending by salaried workers' households in January rose 3.4
percent in real terms from a year earlier, the third straight
monthly increase, the government said Friday.

This follows bullish data released Thursday showed January
retail sales rose 1.3 percent year on year, the first rise in
three months, which prompted the government to say the retail
sector is now showing "signs of recovery".

In Hong Kong shares closed higher as investors snapped up
property stocks after developer Sun Hung Kai Properties received
a strong response to its new housing project.

The key Hang Seng Index closed up 232.39 points, or 1.70
percent.

Sun Hung Kai Properties soared 3.00 dollars to 76.50. The
developer pocketed some 700 million dollars from sales of 300
units at the soft launch of its new housing project at Waterloo
Road in Kowloon, which was priced at a fairly high 4,000 dollars
per square foot, dealers said.

"Although property developers have cut commissions payable to
real estate agencies, the absorption of primary residential flats
remains fast," said Eric Yuen, analyst at Dao Heng Securities.

Singapore share prices closed flat in muted trading as the
market shifted its attention to Finance Minister Lee Hsien
Loong's 2004 budget speech to parliament.

The Straits Times Index closed down 0.07 points to 1,888.63,
while the broader All Singapore Equities Index rose 1.90 points
to close at 511.72.

"There were no big surprises from the budget," a dealer with a
local brokerage said.

"Economic figures from January have been strong, so it seems
the government sees no need to introduce economic relief or
stimulus packages. Investors may actually take this as a good
sign -- that the economic recovery is on track."