Indonesian shares will continue to trade higher in the week ahead on expectations that the US Federal Reserve will cut its key interest rate, dealers said. "The market will still trade stronger on expectation that the Fed would lower its interest rate on October 31," Batavia Prosperindo analyst Suherman Santikno told AFP.
He said hopes for good October inflation data due next Thursday would also drive the market higher. "We are pretty sure that the inflation rate would be in line with the expectation of the Indonesian government. It will bring positive sentiment to our market," he added.
Santikno predicted that the market will pass its all-time high of 2,667 points, which was reached on October 18.
For the week ending October 26, the Jakarta Stock Exchange composite index gained 2.36 percent to 2,624.34 points. Daily average volume was 4.77 billion shares valued at 5.71 trillion rupiah (594.45 million dollars).
Santikno said the market might face resistance at 2,700 points, but had a support level at 2,600.