Inflation to Force Index
Thursday, 01 February, 2007 | 16:36 WIB

TEMPO Interactive, Jakarta: The composite share price index at the Jakarta Stock Exchange is estimated to become weaker on today's trading (02/01).

Stock analyst Alfiansyah has estimated that the index will reach a level of 1,772 with a minimum of 1,736.
On Wednesday (01/31), index was closed at the level of 1,757.258.

According to him, the index movement is affected more by internal factors.

“Regional indices are positive. However, internal factors cause more impact,” said Alfiansyah when Tempo contacted him by telephone.

Increasing inflation rate in January will force the index.

The increase was triggered by a rise in the demand for most primary needs such as rice.

“The inflation rate in January was higher than the previous month or the same month in the previous year,” said Alfiansyah.

It is estimated that shares that will boost today's index will be those of PT International Nickel Indonesia Tbk. (INCO) and PT Aneka Tambang Tbk.

In addition, shares that will force the index are estimated to come from the banking sector because of profit taking.

The shares of Astra Agro Lestari (AALI) and Indosat (ISAT) are also estimated to decrease today.

Desy Pakpahan-TNR