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Indonesian shares outlook - Higher, tracking regional markets

06/26/08 09:46

Jakarta (ANTARA News) - Indonesian shares are expected to open higher on Thursday, tracking gains in other Asian markets, although the upside will be capped by lingering concerns over domestic inflation.

"If we look at the region, I am pretty sure that the market will go up," fund manager at henan Putirai Prayoga Triyono told Thomson Financial.

Stocks in the region were gaining in early trade after the Federal Reserve left interest rates unchanged and although it gave a mixed assessment of the U.S. company, it mentioned some bright spots such as household spending remaining strong.

Triyono said market sentiment may also get a boost from a stronger rupiah after the Fed kept the federal funds rate steady at 2.0 percent.

On Wednesday, the Jakarta composite index closed down 24.02 points or 1.0 percent at 2,341.36. Volume was 1.88 billion shares worth 2.66 trillion rupiah ($287 million).

The rupiah was trading at 9,223/9,227 to the dollar, strengthening from 9,255/9,260 late Wednesday