Friday May 9, 03:43 AM
Indonesian shares outlook - Lower on inflation worries as oil price soars
JAKARTA (Thomson Financial) - Indonesian shares are expected to open lower on Friday on fears that record oil prices will exert
further pressure on domestic inflation in the coming months.
'I think investors are beginning to worry that if inflation continues to rise, consumers' purchasing power will weaken, and ultimately reduce companies' sales, in particular those engaged in the
consumer sector,' Paramitra Alfa Sekuritas analyst Pardomuan Sihombing said.
The persistent strength in commodity prices should continue to prop up miners and plantation stocks and help trim the market's losses.
On Thursday, the composite index closed down 5.77 points or 0.2 percent at 2,376.93.
The LQ-45 index was down 2.19 points at 509.52.
Volume was 3.11 billion shares valued at 4.60 trillion rupiah.
The Indonesian rupiah was trading at 9,250/9,257 to the U.S. dollar in early deals, compared to 9,250/9,260 late Thursday.
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