Indonesian share prices are expected to continue their record-breaking run as investors opt for undervalued stocks like Telkom, an analyst said on Friday. "The outlook remains good. I expect the index to hit 1,060 points next week," said Adrian Rusmana, chief researcher at BNI Securities.
He said many stocks including Telkom and Permata Bank were still undervalued and were likely to attract investors.
The central bank's recent move to ease legal restrictions on lending and mergers had also boosted sentiment, he said.
Bank Indonesia said Tuesday it has issued new regulations that will ease legal restrictions on lending and merger-and-acquisition activities to spur economic growth and accelerate consolidations in the banking sector.
Jakarta shares have hit record highs in recent weeks on a generally positive outlook for the economy despite the devastating December 26 earthquake and tsunamis in Aceh province.
The Jakarta Stock Exchange composite index closed the week up 10,736 points or 1.04 percent at 1,046.483.
Daily average volume totalled 2,62 billion shares valued at 1,64 trillion rupiah (182.2 million dollars) compared with 4.11 billion shares worth 1.86 trillion rupiah.
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