JAKARTA, Nov 6, 2009 (AFP)
Indonesian shares will likely rise next week thanks to signs of recovery in the US economy and a firmer rupiah, dealers said Friday.
“The data from the US shows improvement… the local index will be helped by those signs although its movement will be limited,” Valbury Asia Securities head of research Krishna Dwi Setiawan told AFP.
“The fact that the Dow (Jones Industrial Index) has recently gained will show its effect here. And the US unemployment rate, although still on its way up, has slowed down,” Setiawan said.
“Stocks related to the banking and infrastructure sectors are likely to rise,” he said.
He said that the support level would likely be at 2,360 while resistance would be at 2,430.
Ciptadana Securities head of sales John Teja said the rupiah would show improvement in the coming week.
“I see the rupiah will be in the range of 9,400 to 9,600 to the dollar next week,” Teja said.
The Jakarta Composite Index has gained 27.4 points to 2,395.10 during the week to November 6.
The rupiah ended at 9,465 to the dollar, up from 9,590 the week before.