The Indonesian stock market is expected to trade mixed in the coming week on lingering concerns about high interest rates and global economic uncertainty, analysts said Friday.
"I expect the index to stay back and forth in the 1,300 level. Even though the index rose sharply at the end of this week, fundamentally speaking the market is still haunted by high interest rates in the country," said Ferry Latuhihin, chief economist at Bank Internasional Indonesia.
The US Federal Reserve raised its key federal funds rate by 25 basis points to 5.25 percent Thursday. Indonesia's central bank decided in early June to leave its key interest rate unchanged at 12.50 percent.
Investors are expected to monitor regional markets for leads and Monday's June inflation announcement as well as the central bank's board meeting the following week, said Luki Aryapama, an analyst with Panin Capital.
"The market may still be a bit volatile then but the trend is that it is now moving along positive lines," he added.
For the week ending June 30, the Jakarta Stock Exchange composite index closed up 20.101 points, or 1.56 percent, at 1,310.263. Average daily volume was 1.07 billion shares worth 1.09 trillion rupiah (117 million rupiah).
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