The CSPI would be in that range because funds managers would still be engaged in window-dressing activity, stock market analyst David Nathanael said here Friday.
"We are optimistic that the Indonesian Stock Exchange index (BEI) will be able to achieve that range, if fund managers continue buying shares, thereby pushing up stock prices," he said.
Nathanael said the fund managers` window-dressing activity was already pushing stock prices upward although the share transactions in the IDX were still relatively low.
The condition was mostly caused by the fact that a number of market players had left the market to enjoy their yearend holidays, he said.
Nathanael also said the fund managers were window dressing to make their yearend financial reports look promising.
Stock prices were going up due to buying actions but the purchases were made by fund managers and a small group of market participants while the majority of players had left the market, he said.
Nathanael said market activity had been sluggish and only showed a relatively small volume of transactions of 640 million shares with a value of Rp430 billion, far less than the usual average of Rp3, 6 trillion to Rp4 trillion.
"We are optimistic that stock prices will bounce back, although the number market players has diminished," he said.
The IDX opened 0.23 percent or eight points higher at 3,817 but still had the opportunity to reach 3,830.
"We are optimistic that the index can reach 3,830 points from the window dressing actions at the market`s close," he said.
Besides, foreign market players would still purchase shares up to Rp60 billion or offset by Rp50 billion worth of selloff.
Foreign participants on Thursday (Dec 29) had made share purchases amounting to Rp280 billion which pushed the index to the 3800 point level.
So the prediction that the index could reach the level of 3800 points by the end of this year is already happening and it has even exceeded the target, Nathanael said.
(Uu.A050/HAJM/B003)
Editor: Priyambodo RH
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