Indonesian shares will likely drop amid cautious investor sentiment and profit-taking on major stocks, dealers said Friday. Investors taking a wait-and-see approach ahead of the announcement of third-quarter company earnings will likely avoid any aggressive buying, Jordan Zulkarnaen from Kresna Graha Sekurindo told AFP. "Most of these stocks cannot give hints yet to investors if they can reach higher earnings this year," Zulkarnaen said.
"In other words we can see the Indonesian stock market has lost their interest," he said. "Next week I think most big cap stocks will experience profit-taking."
The support level would likely be at 2,200 with resistance at 2,300, Zulkarnaen said. For the week, the Jakarta Composite Index dropped 47.85 points to 2,467.95. The rupiah closed at 9,435 to the dollar compared to 9,400 the week before.