Shares end at record high; Rupiah rallies<\/p>\n
Dow Jones, Jakarta<\/p>\n
Indonesia's main stock index set a fresh record-high closing
\nlevel on Tuesday, driven by gains in cement and heavy equipment
\nblue chips.<\/p>\n
The Jakarta Stock Exchange Composite Index ended up 17.666
\npoints, or 1.8 percent, at 1018.54 points.<\/p>\n
Cement companies led the gainers on expectations that the
\ncompanies' fortunes will improve this year due to reconstruction
\nefforts in the areas devastated by last week's earthquake and
\ntsunami.<\/p>\n
The market also welcomed President Susilo Bambang Yudhoyono's
\nstatement that the impact of last week's disasters won't likely
\nhurt the country's economic growth this year, traders said.<\/p>\n
The government is predicting an economic expansion of 5.5
\npercent in 2005, outpacing a projected 4.8 percent gross domestic
\nproduct growth for 2004.<\/p>\n
Dealers also said the stronger rupiah against the U.S. dollar
\nand early program buying by many foreign institutional funds
\nhelped boost buying.<\/p>\n
\"We have a lot of positive factors that spurred investors to
\nfurther snap up Indonesian shares,\" said a trader with Paramitra
\nSecurities.<\/p>\n
Gainers led decliners 95 to 39, with 63 stocks unchanged.<\/p>\n
Volume was 1.77 billion shares valued at Rp 1.93 trillion,
\ncompared with 504 million shares valued at Rp 598 billion on
\nMonday.<\/p>\n
Cement maker Semen Gresik rose 3.6 percent to Rp 20,100, while
\nIndocement Tunggal Prakarsa gained 1.5 percent to Rp 3,350. Semen
\nCibinong jumped 9.8 percent to Rp 670.<\/p>\n
Heavy equipment company United Tractors increased 9.7 percent
\nto Rp 2,550 while rival Komatsu Indonesia rose 5.4 percent to Rp
\n3,425.<\/p>\n
Shares of bellwether Telekomunikasi Indonesia gained 0.5
\npercent to Rp 4,950 on a rebound and after its American
\nDepositary Receipts rose 1.5 percent to $21.34 on Monday.<\/p>\n
Dealers expect the market Wednesday to trade higher on follow-
\nthrough buying in infrastructure-related companies.<\/p>\n
In the currency market, the rupiah ended higher after news
\nreports highlighted the possibility of debt relief from
\ninternational lenders and pledges of aid to help the country
\nrebuild its tsunami-affected areas, dealers said.<\/p>\n
The rupiah closed at Rp 9,280 per dollar, down from its close
\non Monday at Rp 9,305.<\/p>\n
Some countries are reported to have been seeking a debt
\nmoratorium for tsunami-hit countries, including Indonesia, to
\nhelp them cope with the impact of last month's disaster.<\/p>\n
The local unit also benefited from the bullish sentiment on
\nlocal stocks.<\/p>\n
Still, some dealers said that the rupiah remains vulnerable,
\nwith the market watching how the government will handle its plan
\nto reduce fuel subsidies in the state budget.<\/p>\n
The government has said that it would raise domestic fuel
\nprices some time this year to cut subsidies, but such a move
\ncould trigger widespread public protest.<\/p>\n
\"It's a catch-22 situation for the government, and the market
\nis keen to see how successful the government will be in
\novercoming it,\" a dealer with a foreign bank said.<\/p>\n
Dealers expect the dollar to trade between Rp 9,260 and Rp
\n9,310 on Wednesday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/shares-end-at-record-high-rupiah-rallies-1447893297",
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"sponsor": "Okusi Associates",
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