RI shares end higher on rebound, debt relief plan<\/p>\n
Dow Jones, Jakarta<\/p>\n
Indonesian shares ended higher on Thursday on a rebound, boosted
\nby news that international lenders have formally approved plans
\nto offer debt relief to tsunami-hit nations, dealers said.<\/p>\n
The Paris Club of the world's wealthiest creditor nations
\nWednesday agreed to offer countries hit by the Dec. 26 tsunami a
\nmoratorium on debt repayments.<\/p>\n
`Indonesia is the country worst affected by the earthquake and
\nsubsequent tsunami.<\/p>\n
The Jakarta Stock Exchange Composite Index ended up 13.09
\npoints, or 1.3 percent, at 1021.67 points. The main index had
\nfallen 2.3 percent in the previous three sessions on profit-
\ntaking.<\/p>\n
Dealers said the firmer rupiah against the U.S. dollar also
\nspurred buying.<\/p>\n
\"The market recovered after recent falls,\" said a trader with
\nKuo Capital Securities.<\/p>\n
Gainers led decliners 97 to 45, with 63 stocks unchanged.<\/p>\n
Volume was 2.4 billion shares valued at Rp 1.95 trillion,
\ncompared with 1.65 billion shares valued at Rp 1.4 trillion on
\nWednesday.<\/p>\n
Bellwether Telekomunikasi Indonesia led gainers, closing up
\n3.1 percent at Rp 4,975 on bargain hunting after falling 5.9
\npercent in the previous three sessions.<\/p>\n
Telkom's rival Indonesia Satellite gained 0.9 percent to close
\nat Rp 5,950 on a rebound.<\/p>\n
Carmaker Astra International gained 4.2 percent to close at Rp
\n9,950 on expectations of higher 2004 earnings due to an increase
\nin car sales.<\/p>\n
Bucking the trend was gold and nickel miner Aneka Tambang,
\nwhich closed down 1.1 percent at Rp 1,730.<\/p>\n
Dealers said they expect the market to trade higher on
\nThursday led by follow-through buying in Telkom.<\/p>\n
Meanwhile, the rupiah finished higher, in tandem with a global
\nweakening of the dollar after the U.S. posted a record trade
\ndeficit.<\/p>\n
The rupiah closed at 9,145 per dollar, strengthened from 9,185
\non Wednesday.<\/p>\n
The U.S. unit fell sharply against its major rivals after data
\nreleased late on Wednesday showed the U.S. trade deficit in
\nNovember at a worse-than-expected at $60.3 billion.<\/p>\n
\"The rupiah benefited from the dollar sell-off across Asia
\ntoday,\" a dealer said.<\/p>\n
News that the Paris Club, comprising the world's wealthiest
\ncreditor nations, Wednesday formally approved a move to offer
\ncountries hit by the Asian tsunami a moratorium on debt
\nrepayments also boosted sentiment on the rupiah, dealers said.<\/p>\n
On Thursday, Senior Economic Minister Aburizal Bakrie said
\nIndonesia received a three-month moratorium on debt repayments of
\naround $700 million to $750 million.<\/p>\n
The moratorium means dollar demand for government debt
\nrepayments will be reduced, giving the local currency a boost.<\/p>\n
However, Indonesian officials have also expressed a preference
\nfor grants over debt moratoriums.<\/p>\n
Finance Minister Yusuf Anwar on Thursday said the government
\nwill only accept a debt moratorium if conditions are favorable to
\nthe country.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-shares-end-higher-on-rebound-debt-relief-plan-1447893297",
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"sponsor": "Okusi Associates",
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