Weekly Report 12 November 2007

12 11 2007

JCI Stock Performance


The strong gains in the market this year have resulted in lofty valuations despite Indonesia’s rosy growth prospects, meaning that some stocks are ripe for profit taking. And concerns on corporate profitability will heighten given the surging crude oil prices. Moreover, investors may also come to see that domestic interest rates have now reached a trough, and that there is little room for further rate cuts given the current conditions. Weak regional sentiment will also put pressure on stocks. As such, stocks are likely to head lower this week with the JCI heading toward the 2,650 level.

Stocks listed on the JSX may come under pressure this week. The strong gains in the market this year have resulted in lofty valuations despite Indonesia’s rosy growth prospects, meaning that some stocks are ripe for profit taking. And concerns on corporate profitability will heighten given the surging crude oil prices. Moreover, investors may also come to see that domestic interest rates have now reached a trough, and that there is little room for further rate cuts given the current conditions. Weak regional sentiment will also put pressure on stocks. As such, stocks are likely to head lower this week with the JCI heading toward the 2,650 level. Weekly Market Commentary 12November07


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