Jakarta shares likely to remain volatile

Indonesian share prices were expected to continue moving cautiously as the market remains volatile to regional sentiment, dealers said Friday.
"The market will take a wait and see stance and expects the Fed to cut its fed funds rate by 25 basis point," Dongsuh Kolibindo Securities analyst Ryan Ariadi Suwarno told AFP. He said there was almost nothing to drive the market domestically, so investors will keep abreast of regional and international sentiment.
Relief operations for the recent natural disaster will drive consumer goods shares next week, he said. An 8.4-magnitude earthquake rocked the island of Sumatra killing at least 14 people and damaged thousands of homes.
Energy, mining and plantation shares will still be favoured by investors, said Suwarno. For the week ending September 14, the Jakarta Stock Exchange composite index dropped 14.29 points or 0.64 percent to finish at 2,225.61. The daily average volume was 4.13 billion shares valued at 2.73 trillion rupiah (290.49 million dollars). Suwarno said the market might face resistance at 2,240 points, but had a support level at 2,200.