Jakarta shares expected to trade flat

Indonesian share prices are expected to trade flat to lower in the week ahead, despite strong domestic fundamentals, as the market continues to undergo a correction, an analyst said.
"The market is actually very much overbought and it needs a technical correction," Ryan Arjadi Suwarno of Dongsuh Kolibindo said. The market may test resistance at 2,000 points, with support seen at 2,047, he said.
He noted that the market had now priced in all recent positive news, including an interest rate cut by the central bank on Tuesday and a strong rupiah, but a market correction was needed to remain healthy.
For the week ended Friday, the Jakarta Stock Exchange index dropped 11.071 points or 0.5 percent to 2,022.297. Daily average volume totalled 4.2 billion shares worth 3.68 trillion rupiah (415.11 million dollars), down from 7.45 billion shares valued at 4.81 trillion rupiah the previous week.