JSX index up on telecom shares gains<\/p>\n
Dow Jones, Jakarta<\/p>\n
Indonesian shares ended slightly higher on Tuesday, with further
\ngains in Indonesian Satellite (Indosat) and a rebound in
\nTelekomunikasi Indonesia (Telkom) driving the main index to a
\nrecord closing high, dealers said.<\/p>\n
"Late buying in Telkom and Indosat on hopes of higher 2004
\nearnings pushed the main index higher," said a trader with Kuo
\nCapital Securities.<\/p>\n
Dealers said overall sentiment remained cautious, weighed down
\nby the weakness of the rupiah against the U.S. dollar and losses
\nin many Asian markets.<\/p>\n
After staying in negative territory for most of the session,
\nthe Jakarta Stock Exchange Composite Index ended up 1.042 points,
\nor 0.1 percent, at 1152.60.<\/p>\n
Decliners, however, led gainers 85 to 51, with 86 stocks
\nunchanged.<\/p>\n
Volume was 2.9 billion shares valued at Rp 2.7 trillion,
\ncompared with 5 billion shares valued at Rp 3.6 trillion on
\nMonday.<\/p>\n
Indosat gained 4.6 percent to Rp 5,100 on a rebound and
\nexpectations that it will book higher 2004 net profit. Indosat's
\nrival Telkom rose 1.1 percent to Rp 4,575 on bargain hunting.
\nBoth companies are expected to announce their 2004 earnings next
\nweek.<\/p>\n
Also higher were shares in Bank Mandiri, which gained 2.6
\npercent to Rp 1,760, on a rebound after falling 3.9 percent on
\nMonday.<\/p>\n
Profit-taking hit shares in Bank Danamon which dropped 3.7
\npercent to Rp 5,150 and cement maker Semen Gresik, which lost 2.8
\npercent to Rp 17,400.<\/p>\n
Dealers expect the market to trade higher on Wednesday on
\nfurther buying in telecommunication blue chips.<\/p>\n
Meanwhile, the rupiah ended slightly higher on profit taking
\nfrom the dollar's recent rise against the local unit, dealers
\nsaid.<\/p>\n
The dollar closed at Rp 9,395, down slightly from its close
\nMonday at Rp 9,405.<\/p>\n
Earlier in the day, the central bank intervened to sell
\ndollars after the U.S. unit touched an intraday high of Rp 9,428.<\/p>\n
Bank Indonesia Governor Burhanuddin Abdullah told reporters
\nthe bank sold dollars on Tuesday and will continue to do so as
\nnecessary. He didn't elaborate.<\/p>\n
The central bank is suspected of frequently intervening in the
\nspot market when the local unit is under selling pressure.<\/p>\n
Dealers suspected on Tuesday the central bank sold the
\ngreenback via a state bank when the dollar rose to Rp 9,428, a
\nlevel not seen since late June 2004.<\/p>\n
"The dollar could have risen to Rp 9,450 if Bank Indonesia
\nhadn't intervened," a dealer said.<\/p>\n
While Bank Indonesia's intervention succeeded in preventing
\nthe dollar from rising further, it was profit taking that pushed
\nthe unit below Monday's close, dealers said.<\/p>\n
Demand for dollars has been robust lately due to rising
\ninternational oil prices and anticipation of a further rate hike
\nin the U.S.<\/p>\n
The U.S. Federal Open Market Committee is widely expected to
\nincrease the federal funds target rate by 25 basis points to 2.75
\npercent at a meeting on Tuesday.<\/p>\n
Dealers expect the dollar to trade between Rp9,380 and
\nRp 9,425 on Wednesday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-index-up-on-telecom-shares-gains-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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