RI shares end higher on year-end window dressing<\/p>\n
Dow Jones, Jakarta<\/p>\n
Indonesian shares ended higher Friday on window-dressing
\nbuying as fund managers sought to improve their equity portfolios
\nbefore the year-end book-closing, dealers said.<\/p>\n
Expectations that the economy will perform better under the
\nnew government also spurred those with a mid-term investment
\nfocus to continue to buy Indonesian shares, dealers said.<\/p>\n
The Jakarta Stock Exchange Composite Index ended up 16.188
\npoints, or 1.7 percent, at 973.354.<\/p>\n
Gainers led decliners 107 to 37, with 62 stocks unchanged.<\/p>\n
Volume was 1.7 billion shares valued at Rp 1.5 trillion.<\/p>\n
Bellwether Telekomunikasi Indonesia headed the gainers. The
\nstock rose 1.5 percent at Rp 4,950 on the company's plan to buy a
\nstake of up to 30 percent in an Asian telecommunications company
\nnext year.<\/p>\n
Dealers said investors continued to buy shares of cement maker
\nSemen Gresik on news the government expects to settle by Jan. 28
\nits dispute about management control with Mexico's Cemex, which
\nhas a 25 percent stake in the Indonesian firm. Gresik rose 2.9
\npercent at Rp 16,100.<\/p>\n
Cigarette maker Gudang Garam rose 1.5 percent to Rp 13,250 and
\nrival Hanjaya Mandala Sampoerna climbed 4.7 percent to Rp 6,750.<\/p>\n
Dealers said they expect the market to trade higher Monday on
\nfurther year-end window dressing.<\/p>\n
Meanwhile, the rupiah ended lower for the second consecutive
\nsession Friday amid rising dollar demand from local corporates to
\nsettle their foreign debts, dealers said.<\/p>\n
The dollar finished at Rp 9,315, up from its close Thursday at
\nRp 9,270. The U.S. unit hit an intraday high of Rp 9,330.<\/p>\n
"The fall of the rupiah is purely on rising demand for the
\ndollar," said a trader with a foreign bank. Underlying sentiment
\nfor the rupiah, he said, remains positive amid expectations that
\nthe economy will perform better under the new government.<\/p>\n
Demand for the dollar is usually robust toward the year-end as
\nlocal companies repay maturing offshore debts. Local companies
\nare saddled with around $60 billion in offshore borrowings.<\/p>\n
Dealers said a tight liquidity position in the rupiah,
\nhowever, prevented the U.S. currency from strengthening further.<\/p>\n
"The dollar's rally was also limited by worries that the
\ncentral bank would intervene in the market to defend the rupiah,"
\nsaid another trader with a state-owned bank.<\/p>\n
Analysts say Bank Indonesia needs to stop the rupiah from
\nfalling further to help curb imported inflation. If it does so,
\nthe central bank wouldn't have to raise interest rates - which
\ncould hurt the economy.<\/p>\n
Dealers expect the U.S. currency to trade between Rp 9,300 and
\nRp 9,350 Monday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-shares-end-higher-on-year-end-window-dressing-1447893297",
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"sponsor": "Okusi Associates",
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