Indonesian stocks, which rose almost one percent this week, will continue to climb next week on positive sentiment after Indonesia's central bank cut a key interest rate.
Analyst Jeffrey Sihombing from Mega Capital Securities said Bank Indonesia's 50 basis points interest rate cut to 11.75 percent earlier this week would boost domestic sentiment.
"The rally will continue next week as reports of various new infrastructure deals with foreign investors will further spur buying," he added.
Investors are likely to keep an eye on plans by foodmaker Indofood to merge its plantation subsidiary units into a single firm, Sihombing said.
He added select banking, mining and telecom stocks would remain attractive for investors due to attractive valuations.
The market might face resistance at 1,415 points, with support seen at 1,380 points, Sihombing said.
Evergreen Capital analyst Edwin Sebayang added that fresh fund inflows would continue to rally stocks next week, even though it will be holiday-shortened.
"I think people will chase interest rate-sensitive issues like banks, properties and finance companies next week," he said.
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