Shares up led by blue chip gains<\/p>\n
Dow Jones\/Jakarta<\/p>\n
Indonesian shares ended higher on Tuesday led by bargain-
\nhunting in telecommunication blue chips after the main index fell
\nin the previous three sessions, dealers said.<\/p>\n
They said gains on several Asian markets improved local
\nsentiment, but concerns about interest rates kept overall
\nsentiment cautious.<\/p>\n
The central bank on Tuesday raised its Bank Indonesia Rate to
\n8.75 percent from 8.50 percent to cope with rising inflation.<\/p>\n
\"The interest rate move spurred investors to continue
\noffloading shares that are sensitive to the interest rate
\nmovement,\" said a trader with a foreign securities firm.<\/p>\n
The Jakarta Stock Exchange's Composite Index rose 0.4 percent,
\nor 4.213 points, to 1162.799.<\/p>\n
Gainers led decliners 56 to 38, with 76 stocks unchanged.
\nVolume fell to 1.25 billion shares valued at Rp 1.1 trillion,
\ncompared with 1.4 billion shares worth Rp 1.25 trillion on
\nMonday.<\/p>\n
Indonesian Satellite Corp. gained 4.6 percent to Rp 5,750 and
\nrival Telekomunikasi Indonesia rose 0.9 percent to Rp 5,400 on a
\nrebound after falling in the previous three sessions.<\/p>\n
Dealers said investors continued to buy several mining blue
\nchips that have solid fundamentals and a bright outlook.<\/p>\n
Coal miner Tambang Batubara Bukit Asam rose 6 percent to Rp
\n1,780 and nickel miner International Nickel Indonesia added 2
\npercent to Rp 15,600 on expectations of improved 2005 earnings
\ndue to higher commodity prices.<\/p>\n
On the downside, automotive company Astra International
\nsuccumbed to selling pressure on expectations of lower 2005 sales
\nas the high interest rate could dissuade people from buying cars
\nthrough bank loans.<\/p>\n
Astra lost 0.9 percent to Rp 11,700.<\/p>\n
Elsewhere, heavy equipment company United Tractors dropped
\n3.8 percent to Rp 4,400 on profit-taking after sharp gains last
\nweek.<\/p>\n
Dealers said they expect Indonesian shares to trade slightly
\nhigher on Wednesday led by a further rebound in telecommunication
\nblue chips.<\/p>\n
The Indonesian rupiah closed lower on Tuesday due to onshore
\ndollar demand and an absence of offshore dollar-selling, with on
\nTuesday being a National Day holiday in neighboring Singapore,
\ndealers said.<\/p>\n
The dollar closed at Rp 9,795 compared with Rp 9,772 on
\nMonday. The dollar rose to an intraday high of Rp 9,800.<\/p>\n
Domestic dollar demand on behalf of Singapore's United
\nOverseas Bank was a significant factor that weighed the rupiah
\ndown, a dealer at a foreign bank said, without elaborating.<\/p>\n
Dealers said the currency market didn't react to a decision
\nearlier Tuesday by Bank Indonesia to raise its benchmark rate to
\n8.75 percent from 8.50 percent to contain inflationary pressures.<\/p>\n
\"The rate hike was quite expected,\" a dealer said.<\/p>\n
Dealers said that local corporate are likely to maintain their
\n\"healthy\" appetite for dollars in the remainder of the week to
\nservice overseas debt obligations.<\/p>\n
\"We'll likely see spot trading in a narrow range in the days
\nahead, but the dollar could go higher,\" a dealer said.<\/p>\n
The dollar will likely trade Wednesday between Rp 9,780 and
\nRp 9,820, dealers said.<\/p>",
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"sponsor": "Okusi Associates",
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