Share Price Index Expected to Strengthen
Monday, 22 January, 2007 | 16:30 WIB

TEMPO Interactive, Jakarta: It is expected that during today’s (01/22) trading the Composite Share Price Index (IHSG) at the Jakarta Stock Exchange could strengthen.

According to Satrio Utomo, an analyst from PT Trimegah Securities, index hike could happen because of improvements in regional indices as well as positive news from Bank Mandiri.

“The decrease of Mandiri's non performing loans (NPL) ratio may improve the index,” he told Tempo Monday (01/22) in Jakarta.

He said he expected that during today's trading, the index would open at a level of 1,825, with the lowest level of between 1,785 and 1,825.

So far, he said, there were no indications that the index would drop.

However, should the index decline, he has recommended that market players carry out exit trading for the time being.

Satrio also said that shares of PT Perusahaan Gas Negara Tbk (the state gas company) could also possibly affect the index.

“However, this correction can be covered by the banking sector,” he said.

It is expected that the most sought after shares in today's trading will include Bank Mandiri's in the banking sector and International Nickel Indonesia's (INCO) in the mining sector.

Desy Pakpahan