Shares end up on late buying in Medco, Telkom<\/p>\n
Dow Jones
\nJakarta<\/p>\n
Indonesian shares ended marginally higher on Friday as late
\nbuying in oil and gas producer Medco Energi and a rebound in
\nTelekomunikasi Indonesia erased earlier losses, dealers said.<\/p>\n
After staying in negative territory for most of the session,
\nthe Jakarta Stock Exchange Composite index ended up 2.74 points,
\nor 0.3 percent at 1,096.93, up from an intraday low of 1,089.69.<\/p>\n
\"Sharp gains in Medco and Telkom lifted the main index from
\nits low,\" said a trader with Kuo Capital Securities.<\/p>\n
Dealers said overall sentiment, however, remained weak and
\ncautious as lingering concerns over the nation's security in the
\nwake of bomb threats in the capital spurred further profit taking
\nby foreign funds.<\/p>\n
Decliners led gainers 62 to 43, with 63 stocks unchanged.<\/p>\n
Volume was 1 billion shares valued at Rp 968 billion, compared
\nwith 848 million shares valued at Rp 715 billion on Thursday.<\/p>\n
Medco jumped 17 percent to Rp 4,000 ahead of its plan to sell
\na stake of around 40 percent through a secondary offering on the
\nLuxembourg bourse in the second half of this year.<\/p>\n
Bellwether Telkom rose 1.1 percent to Rp 4,750 on a rebound
\nafter a 0.5 percent fall on Thursday and on expectations that the
\ncompany will pay a higher 2004 dividend.<\/p>\n
Shares in Gudang Garam, the nation's largest cigarette maker,
\nadvanced 1.8 percent to Rp 12,200 on further buying after the
\ngovernment Wednesday said it will only raise the minimum retail
\nprice of cigarettes by 15 percent, compared with its initial plan
\nof a 20 percent increase.<\/p>\n
Garam gained 1.7 percent on Thursday.<\/p>\n
On the downside, automotive company Astra International
\ndropped 1.6 percent to Rp 12,450 on profit taking after sharp
\ngains earlier this week.<\/p>\n
Bank Mandiri lost 1.3 percent to Rp 1,510 on expectations that
\nthe bank's 2005 earnings will be hit by higher non-performing
\nloans. At the end of March, Bank Mandiri's net profit fell 70
\npercent on year due to higher bad loan provisions.<\/p>\n
Dealers said they expect the market to rise on Monday led by
\nfollowthrough buying in Medco and Telkom.<\/p>\n
Meanwhile, the rupiah also closed higher, thanks to Bank
\nIndonesia's steadfastness in defending the local unit, dealers
\nsaid.<\/p>\n
The dollar closed at Rp 9,590, down from its close on Thursday
\nat Rp 9,610.<\/p>\n
The greenback rose to an intraday high of Rp 9,655 due to a
\ncombination of its global bullishness and local security concerns
\nafter the Australian government warned of possible terrorist
\nattacks.<\/p>\n
\"We continue to receive a stream of credible reporting
\nsuggesting that terrorists are in very advanced stages of
\nplanning attacks in Indonesia,\" Australia's Department of Foreign
\nAffairs said in a warning posted on the department Web site.<\/p>\n
\"Attacks could occur at any time, anywhere in Indonesia and
\ncould be directed at any locations known to be frequented by
\nforeigners.\"<\/p>\n
Dealers said that Bank Indonesia unwound dollars to push the
\ngreenback lower.<\/p>\n
Bank Indonesia chief Burhanuddin Abdullah had said earlier
\nthis week that the central bank would continue to intervene in
\nthe local foreign exchange market to help the rupiah.<\/p>\n
He, however, said that intervention is only a temporary
\nmeasure, urging the government to boost efforts to make the
\ncountry a net oil exporter again. He blamed the rupiah's weakness
\non partly the high oil import bills.<\/p>\n
Dealers said the dollar may try to test Rp 9,600 against next
\nweek as its global bullishness still looks intact.<\/p>",
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"sponsor": "Okusi Associates",
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