Indonesian bourse seen down
JAKARTA: Indonesian shares are seen to go down next week as selling may continue for industrial conglomerate Bakrie and Brothers and its units over its rising debt, dealers said.
“The index seems to drop next week. Bakrie group’s increasing debt has made more investors sell their shares,” Valbury Asia Securities head of research Krishna Dwi Setiawan said. The Bakrie conglomerate, which ranges from plantations to telecommunications, accounts for about a quarter of the local bourse. “There’s also an external factor. The threat of default in Dubai can affect investment in emerging markets, such as Indonesia,” he said.
Dubai shocked stock markets Wednesday when it asked for a six-month suspension on debts held by the state holding conglomerate Dubai World, owners of the emirate’s biggest property developer. Ciptadana Securities head of sales John Teja said stocks in the resources and mining sector would be affected the most next week.
“The support level will be at 2,350 while the resistance will be at 2,450,” Teja said. Over the week to November 27, the Jakarta Composite Index lost 93.85 points to 2,393.51. The rupiah closed at 9,445 to the dollar, up from 9,500 the week before. afp
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| Sunday, January 21, 2007
