Indonesian share prices are expected to fall next week, deepening a sharp drop experienced in trading Friday, dealers said. "I expect the market will continue to be on a down trend because of uncertainty regarding the US economy and the high oil price," said Lanang Trihardian, an analyst with Erdikha Elit.
"I think it will be a volatile market next week with a tendency to correct." The Jakarta Stock Exchange composite index dropped 1.4 percent on Friday due to profit taking on the previous two days' growth and uncertainty in the US.
Trihardian said investors would be lookiing toward the US economy and announcements by the Federal Reserve before making their next moves. "If it looks like the US will have a soft landing and basically continue slower growth it will be fine. "But the thing we are worried about is if the US economy will have another recession, that will have a big impact on other markets," he said.
Big miners are expected to buck next week's trend, thanks to continued strong growth in prices for commodities such as gold, nickel and tin.
"I think next week the mining sector will have a rebound, there is potential for a rebound, and one of the main drivers will be commodity prices," Trihardian said.
For the week ending November 16, the composite index dropped 38.97 points or 1.46 percent to finish at 2,668.70. Daily average volume was 4.58 billion shares valued at 6.96 trillion rupiah (751.36 million dollars). Trihardian said the market might face resistance at the 2,732-point level, with support likely at 2,622.