Shares end higher on gains in Telkom, Bank Lippo<\/p>\n
Dow Jones, Jakarta<\/p>\n
Indonesian shares ended marginally higher on Monday, with
\ngains in bellwether Telekomunikasi and Indonesia Bank Lippo
\ndriving the main index to break above the key level of 1,100
\npoints.<\/p>\n
The Jakarta Stock Exchange Composite index ended up 0.4
\npercent, or 3.946 points, at 1100.878 points.<\/p>\n
The index last touched 1,100 points on April 15, before
\nfalling due to worries over rising interest rates.<\/p>\n
Gainers led decliners 60 to 40, with 64 stocks unchanged.<\/p>\n
Volume was 645 million shares valued at Rp 714 billion,
\ncompared with 1 billion shares valued at Rp 968 billion on
\nFriday.<\/p>\n
Telkom gained 1.6 percent to close at Rp 4,825 on expectations
\nthe company will pay a higher 2004 dividend and after its
\nAmerican depositary receipts in New York rose 2.5 percent to
\nUS$19.95. Telkom's rival Indonesian Satellite ended up 1.9
\npercent at Rp 5,400 on expectations of improved first-half
\nearnings.<\/p>\n
Bank Lippo rose 3.9 percent to Rp 1,060 on news Khazanah
\nNasional Bhd., Malaysia's state-owned investment arm, has emerged
\nas a main contender to acquire a controlling stake in the bank.<\/p>\n
However, dealers said overall sentiment remained cautious over
\nrenewed concerns that the rupiah will fall further on rising
\ndollar demand from importers to finance imports ahead of the end
\nof the month.<\/p>\n
The dollar was trading higher at Rp 9,610, compared with its
\nprevious close at Rp 9,589 Friday on broad bullish sentiment over
\nthe dollar.<\/p>\n
Oil and gas producer Medco Energi fell 6.3 percent to Rp 3,750
\non profit taking after 17 percent gains on Friday ahead of its
\nplan to sell a 40 percent stake through a secondary offering on
\nthe Luxembourg bourse in the second half of the year.<\/p>\n
Dealers said they expect the market to continue its rise on
\nTuesday led by further gains in Telkom.<\/p>\n
The Indonesian rupiah closed lower on Monday on broad bullish
\nsentiment toward the dollar globally, but suspected Bank
\nIndonesia intervention helped the local unit recoup some of its
\nlosses, dealers said.<\/p>\n
The dollar closed at Rp 9,610, up from its close on Friday at
\nRp 9,590.<\/p>\n
The greenback jumped to an intraday high of Rp 9,645 early in
\nthe day as market participants looked to the dollar's rise versus
\nother major rivals for direction in the local foreign-exchange
\nmarket amid a lack of fresh domestic factors.<\/p>\n
Later in the day, the central bank was suspected of supplying
\ndollars to the market to aid the rupiah. This in turn triggered
\nprofit-taking against the dollar, dealers said.<\/p>\n
\"The market has been caught long on dollars, and Bank
\nIndonesia's intervention served as a catalyst for profit-taking,\"
\na dealer with a European bank said.<\/p>\n
Dealers expect the dollar could continue to trade above
\nRp 9,600 on Tuesday, but that Bank Indonesia will likely remain
\nvigilant in defending the rupiah.<\/p>\n
\"I think Rp 9,645-50 will be a good resistance level for the
\ndollar tomorrow,\" another dealer said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/shares-end-higher-on-gains-in-telkom-bank-lippo-1447893297",
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"sponsor": "Okusi Associates",
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