Indonesian market to continue positive trend

Jakarta (Antara News) - The Indonesian stock market is likely to maintain its upward trend, despite possible corrections due to overbuying, an analyst said ovber the weekend.

"Technically, it's possible for the index to continue its rise next week because the trend has been on the increase since July," said Fitri Murniawati, an analyst from BNI Securities.

"Even if there's a correction, that's normal because it's been overbought and correction is also needed," she told AFP.

Murniawati said telecom shares still led the index.

"What's interesting in the entry of telecom shares, (they are) quite high-performing stocks," she said.

Indonesia's solid macro-economic conditions led the central bank to cut its key interest rate by 50 basis points this week to 10.25 percent, the sixth cut since May.

A central bank survey this week said the consumer confidence index rose to 98.1 points in October, its highest in 14 months.

On Friday, Coordinating Minister for the Economy, Budiono, forecast the economy to achieve its growth target of 5.8 percent this year.

Murniawati believes that Bush's upcoming visit could also boost sentiment in the coming weeks.

"What's important is to keep the positive sentiment," she said.

For the week ending November 10, the Jakarta Stock Exchange composite index gained 51.914 points, or 3.22 percent, to 1664.837.

Daily average volume totalled 1.79 billion shares valued at 2.06 trillion rupiah (226 million dollars).

Murniawati said plantation stocks, automotive and banking is likely to be favoured next week.

She said the market might face resistance at 1,673 points, with support seen at 1,650 points. (*)
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