Market Seen Maintaining Upward Trend
JAKARTA ~ The stock market is likely to maintain its upward trend until mid-December, mostly driven by hedgefunds, an analyst said.
“The upward trend will be much influenced by the character of hedge funds. Usually towards the end of the year, they will do some window-dressing – they will buy a lot,” said Lanang Trihardian, an analyst with Erdhika Elit.
Trihardian said “the market will break the 1,700 level by the end of the month and continue its upward trend until mid-December. Correction is possible at the end of the year.”
He said that blue chip shares such as Telkom would continue to drive the market next week.
Plantation would continue to do well, such as Bakrie’s UNSP, although “a late mover, they can still maintain an upward potential,” he said.
Although upbeat on the potential rise of the market, Trihardian said that psychologically the market could have suffered if US President George W. Bush’s visit caused continued demonstrations.
The Central Bureau of Statistics announced last week that Indonesia’s gross domestic product in the third quarter was up 3.49 percent compared to the second and grew 5.52 percent year-on-year.
For the week ending November 17, the Jakarta Stock Exchange composite index gained 7.271 points to finish at 1,672.108.
Daily average volume totaled 2.71 billion shares valued at Rp2.16 trillion (US$235.42 million).
Trihardian said banking and plantation stocks were likely to be favored.Filed under: