Shares end up, led by gains in Astra<\/p>\n
Dow Jones\/Jakarta<\/p>\n
Indonesian shares ended higher on Thursday led by gains in
\nautomotive company Astra International which was in demand on
\nplans to pay a Rp 270 a share dividend June 21, dealers said.<\/p>\n
They said news that Indonesia's annual inflation in May slowed
\nto 7.40 percent from 8.12 percent in April boosted overall
\nsentiment.<\/p>\n
\"The slow inflation figure was good news and it renewed
\nexpectations that the interest rate won't increase significantly
\nfor the remainder of the year,\" said a fund manager with
\nParamitra Securities.<\/p>\n
The Jakarta Stock Exchange Composite Index on Thursday ended
\nup 8.524 points, or 0.8 percent, at 1091.465.<\/p>\n
Decliners, however, led gainers 59 to 54, with 68 stocks
\nunchanged.<\/p>\n
Volume was 1.15 billion shares valued at Rp 1.4 trillion,
\ncompared with 2.75 billion shares valued at Rp 1.8 trillion on
\nWednesday.<\/p>\n
Astra International rose 3.3 percent to Rp 12,400 also on
\nexpectations of improved first half earnings due to an increase
\nin sales.<\/p>\n
Dealers said investors also bought shares in bellwether
\nTelekomunikasi Indonesia on expectations that the company will
\ngive a higher 2004 dividend. Telkom gained 1.6 percent to
\nRp 4,825 and rival Indonesian Satellite rose 2.5 percent to
\nRp 5,150.<\/p>\n
Also higher were shares in oil producer Medco Energi, which
\nended up 3.9 percent at Rp 3,300 on expectations of higher first
\nhalf earnings due to rising oil prices.<\/p>\n
Shares in Bank Mandiri, the nation's largest lender by assets,
\nsuccumbed to selling pressure after it reported that its first
\nquarter net profit fell 70 percent on year due to higher bad loan
\nprovisions and a drop in net interest income.<\/p>\n
Dealers said they expect the market to trade higher on Friday
\non follow-through buying in Astra international and
\ntelecommunication blue chips.<\/p>\n
The Indonesian rupiah closed lower Thursday on the dollar's
\nstrength against major currencies, particularly the euro, dealers
\nsaid.<\/p>\n
However, the dollar's gains were capped as investors took
\nprofit, and on capital inflows linked to the stock market, they
\nsaid.<\/p>\n
The dollar closed at Rp 9,565, up from Rp 9,555 on Wednesday.<\/p>\n
The U.S. unit reached an intraday high of Rp 9,595, but fell
\nback when profit-taking kicked in. Dealers also observed capital
\ninflows likely linked to the local stock market, helping the
\nrupiah recover slightly.<\/p>\n
\"I think Philip Morris sold dollars again today,\" a dealer
\nsaid.<\/p>\n
Market players believe the U.S. tobacco company has been
\naccumulating the rupiah since last month to pay for its purchase
\nof a 58 percent stake in Indonesia's third largest cigarette
\nmaker, HM Sampoerna.<\/p>\n
Dealers expect the dollar to trade between Rp 9,550 and Rp
\n9,600 on Friday, depending on its movement against other hard
\ncurrencies.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/shares-end-up-led-by-gains-in-astra-1447893297",
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"sponsor": "Okusi Associates",
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