Shares End Up At Record High On Bk Blue Chips
\nJP\/14\/Market<\/p>\n
HL I<\/p>\n
Shares End Up At Record High On Bk Blue Chips<\/p>\n
Dow Jones\/Jakarta<\/p>\n
Indonesian shares ended higher on Tuesday, with gains in
\ncertain bank and heavy equipment blue chips driving the main
\nindex to close at a new record high, dealers said.<\/p>\n
The Jakarta Stock Exchange's Composite Index ended up 0.7
\npercent, or 8.253 points, at 1178.003. The main index on Monday
\nfell 0.2 percent on profit-taking.<\/p>\n
The market quickly recovered from yesterday's fall, proving
\nthat the underlying sentiment for Indonesian shares remained
\npositive due to expectations of promising economic growth, said a
\ntrader with a local securities firm.<\/p>\n
The Indonesian government expects the economy to expand by
\n6.1 percent in 2005 from around 5 percent last year.<\/p>\n
"If buying continues, the main index may test 1200-level very
\nsoon," said another trader with a foreign securities firm.<\/p>\n
Gainers led decliners 78 to 47, with 69 stocks unchanged.<\/p>\n
Volume rose to 1.5 billion shares valued at Rp 1.25 trillion,
\ncompared with 1.2 billion shares valued at Rp 1.16 trillion
\nMonday.<\/p>\n
Bank Danamon rose 3.8 percent to Rp 5,700, Bank Central Asia
\ngained 2.1 percent to Rp 3,625 and Bank Negara Indonesia ended up
\n1.2 percent to Rp 1,650. Dealers said investors bought these
\nbanks' shares on expectations of improved first-half earnings due
\nto an increase in interest income.<\/p>\n
Heavy equipment company United Tractors jumped 6.6 percent to
\nRp 4,450 on hopes of good first-half earnings due to an increase
\nin its Komatsu branded tractor sales. United Tractors sold 483
\ntractors in the first half, compared with 162 units in the
\ncorresponding period last year.<\/p>\n
Analysts attributed the jump in Tractors' sales to promising
\ndevelopment in infrastructure and mining sectors in Indonesia.<\/p>\n
Elsewhere, oil and gas producer Medco Energi bucked the trend
\nand fell 4.3 percent to Rp 3,350 on renewed worries that a
\ncontrolling shareholder will sell a 30 percent stake on the
\nLuxembourg bourse at a discount.<\/p>\n
Dealers expect shares to continue to rise Wednesday on follow-
\nthrough buying in bank blue chips.<\/p>\n
The Indonesian rupiah ended slightly higher on Tuesday, with
\ndealers saying the central bank may have intervened in the market
\nto support the domestic currency.<\/p>\n
The dollar closed at Rp 9,810 versus Rp 9,820 on Monday.<\/p>\n
Healthy demand from local companies drove the dollar to an
\nintraday high of Rp 9,835, dealers said, but state-owned banks
\nsold the greenback likely on behalf of the central bank to
\nsupport the local unit.<\/p>\n
"The central bank is currently the single largest dollar
\nsupplier in the local currency market as dollar inflows from
\nforeign market participants dried out," a dealer said.<\/p>\n
Bank Indonesia, the central bank, imposed regulations earlier
\nthis month to curb participation of offshore market players to
\nreduce volatility and trading volumes in the local unit.<\/p>\n
The lack of asset sales by the government has also limited
\ndollar inflows.<\/p>\n
Dealers expect the dollar to trade between Rp 9,800 and Rp
\n9,820 on Wednesday.<\/p>",
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