Weekly Outlook Nov26, 2007

26 11 2007

Weekly Outlook : Stocks may arrest their falls this week boosted by the rebound on Wall Street and the upbeat sentiment on regional markets. Moreover, the bad news on Temasek may also be overdone, since the ruling is company specific and should have a minimal impact on listed companies overall. And the historical tendency for stocks to do well in December should also not be disregarded. As such, the market may recover somewhat this week with the JCI heading toward the 2,630-2,650 level.

Stocks listed on the JSX extended their losses last week after the Indonesian anti-monopoly watchdog ruled against Temasek. The decision led to widespread selling as market players fear that foreign investors may be much more cautious now in their investment plans. Other market negatives were the persistently high crude oil prices that raise concerns over weaker corporate profits growth – fuel supplied to industrial customers in Indonesia is not subsidized – and lingering worries over the US economy outlook. Over the week, the JCI lost 99.19 points or 3.7 percent to 2,569.51. Read the rest of this entry »