Shares End Higher, Led By Gains In Medco
\nJP\/14\/Market<\/p>\n
Shares End Higher, Led By Gains In Medco<\/p>\n
Dow Jones\/Jakarta<\/p>\n
Indonesian shares ended higher on Thursday led by gains in gas
\nand oil company Medco Energi ahead of its plan to sell a 30
\npercent stake on the Luxembourg bourse next month, dealers said.<\/p>\n
The Jakarta Stock Exchange's Composite Index ended up 0.7
\npercent at 1186.614 - another fresh high. Many analysts now
\nexpect it to break above the key 1,200-level very soon.<\/p>\n
\"The market managed to maintain its uptrend momentum despite
\nsporadic profit taking by local funds,\" said an analyst with a
\nlocal securities firm. He expects foreign funds to continue
\nprogram buying on expectations that the nation's economy will
\ngrow better this year than in 2004.<\/p>\n
Decliners led gainers 73 to 55, with 77 stocks unchanged.
\nVolume fell to 1.7 billion shares, valued at Rp 1.24 trillion,
\ncompared with 2.2 billion shares valued at Rp 1.7 trillion
\nWednesday.<\/p>\n
Medco jumped 11 percent to Rp 3,775 on expectations that
\nEncore Limited, which owns 85.5 percent of Medco, will sell a 30
\npercent stake in Medco at a premium. Sources at Medco said that
\nthe company will price its shares later today.<\/p>\n
Bellwether Telkom gained 1.8 percent to Rp 5,700 on a rebound
\nand expectations of improved first-half earnings. Telkom is
\nexpected to announce its earnings on Friday.<\/p>\n
Elsewhere, shares in Bank Rakyat Indonesia gained 4.2 percent
\nto Rp 3,125 after the company said its first-half net profit rose
\n13 percent on year.<\/p>\n
On the down side, profit taking hit shares in carmaker Astra
\nInternational, which fell 1.1 percent, to Rp 13,000.<\/p>\n
Dealers said local retail investors also took profit in many
\nsmall-capitalized stocks that had gained recently.<\/p>\n
Among these, technology company Astra Graphia fell 9 percent
\nto Rp 355 after gaining 30 percent in the previous three
\nsessions.<\/p>\n
Dealers expect shares to trade higher on Friday led by further
\nbuying in Medco.<\/p>\n
The Indonesian rupiah ended steady on Thursday as dollar
\ndemand from local companies abated, dealers said.<\/p>\n
The dollar closed at Rp 9,838 versus its close on Wednesday at
\nRp 9,840.<\/p>\n
\"It seemed that most companies, which have to pay maturing
\noffshore obligations at the end of the month, have secured their
\ndollar needs,\" a dealer with a local bank said.<\/p>\n
Dealers said that Bank Indonesia was heard asking about the
\ndollar-rupiah quote in the market, but they didn't think it
\nactually sold dollars.<\/p>\n
The International Monetary Fund (IMF) recommended in its
\nannual review on Indonesia Wednesday that Bank Indonesia limits
\ninterventions in the foreign exchange market to those needed to
\ncounter short-term volatility.<\/p>\n
The fund added that Indonesia may need higher rates to make
\nsure that inflation is contained and also to help the rupiah.<\/p>\n
Dealers expect the dollar to trade between Rp 9,820 and Rp
\n9,840 on Friday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/shares-end-higher-led-by-gains-in-medco-1447893297",
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