Shares end higher led by gains in Telkom<\/p>\n
Dow Jones, Jakarta<\/p>\n
Jakarta shares ended higher on Friday led by gains in bellwether
\nTelekomunikasi Indonesia ahead of the company's plan to pay its
\ndividend in the second week of July, dealers said.<\/p>\n
They said investors, mostly foreigners, also bought shares in
\ncompanies that earn U.S. dollars on expectations of an improved
\n2005 performance due to the weaker rupiah.<\/p>\n
The Jakarta Stock Exchange's Composite Index ended up 1.5
\npercent, or 16.61 points, at 1138.99.<\/p>\n
Gainers led decliners 62 to 58, with 60 stocks unchanged.
\nVolume was 1.1 billion shares valued at Rp 976 billion, compared
\nwith 894 million shares valued at Rp 761 billion on Thursday.<\/p>\n
\"The main index should continue to rise next week on further
\nforeign program buying,\" said a trader with a foreign securities
\nfirm.<\/p>\n
Bellwether Telkom jumped 5 percent to Rp 5,250 ahead of the
\ncompany's plan to pay a Rp 152 a share dividend July 15. Telkom's
\nrival Indonesian Satellite (Indosat) gained 2.7 percent to Rp
\n5,650 on a rebound after recent falls.<\/p>\n
Nickel miner International Nickel Indonesia gained 3.2 percent
\nto Rp 14,600, on expectations of improved first-half earnings on
\nthe back of the stronger dollar. Most of Inco's output is
\nexported.<\/p>\n
Shares in automotive company Astra International were also
\nhigher, rising 2.4 percent to Rp 13,000 on expectations of an
\nimproved first-half due to an increase in car sales.<\/p>\n
On the down side, Bank Negara Indonesia dropped 1.2 percent to
\nRp 1,670 on profit taking on expectations the bank's earnings
\nwill fall due to a decrease in its net interest margins.<\/p>\n
Dealers said they expect shares to trade higher on Monday on
\nfurther buying in Telkom and Inco.<\/p>\n
On the currency market, the rupiah closed lower for the fifth
\nstraight session, but managed to get off its intraday low on
\nsuspected central bank intervention through state-owned banks,
\ndealers said.<\/p>\n
The dollar closed at Rp 9,770, up from Rp 9,758 on Thursday.
\nThe rupiah hit an intraday low of Rp 9,785.<\/p>\n
Bank Indonesia Deputy Governor Aslim Tadjudin said on Friday
\nthe rupiah is currently undervalued against the U.S. dollar,
\nattributing its weakness to global factors.<\/p>\n
Aslim said rising U.S. interest rates and global oil prices
\nare putting pressure on the local currency.<\/p>\n
\"We also see rising demand for the U.S. dollar by local
\ncompanies,\" he said.<\/p>\n
Aslim said the central bank will keep a close watch on the
\nforeign-exchange market and will intervene to help the rupiah \"if
\nnecessary.\"<\/p>\n
Dealers said the statement from the central bank hasn't
\nimproved sentiment toward the rupiah much.<\/p>\n
\"There are fresh bids from local companies anytime the rupiah
\nrises,\" said a trader with a state-owned bank.<\/p>\n
They expect the dollar to trade between Rp 9,730 and Rp 9,800
\non Monday, and to likely face profit-taking.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/shares-end-higher-led-by-gains-in-telkom-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}