Jakarta (ANTARA News) - Indonesian shares are likely to be little changed next week despite slashes in fuel and electricity prices, dealers said Friday.
"The market will be stagnant but volatile," analyst Suherman Santikno from Batavia Prosperindo told AFP.
"The market is driven by consumption. Good local news like fuel and electricity price cuts locally will promote consumption. But the market still look at Wall Street as a benchmark and global economic news have not been so rosy," he said.
Indonesia cut the price of subsidised fuel from Thursday to boost the buying power of Indonesians. The price of premium petrol was slashed from 5,000 rupiah (45 cents) a litre to 4,500, and diesel was reduced from 4,800 rupiah a litre to 4,500.
"The support level for next week is 1,300 and the resistance level is 1,400," Santikno said.
Dealers said the price cuts would reduce inflation and interest rates, and will benefit the banking and property sectors.
Indonesian shares ended 1.5 percent higher Friday following gains across most Asian markets.
The rupiah ended at 11,225 to the dollar compared with 11,210 the day before.
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