Foreign presence boosts local stock trading

JAKARTA (JP): Trading on the Jakarta Stock Exchange rose for a third consecutive day Wednesday on the back of an increased foreign presence.

Christina Lim of Harita Securities said foreign investors had reentered the market with stronger confidence in the country's economic fundamentals and political stability.

Foreign exchange reserves held by the central bank last month reached a record high of US$20.4 billion despite the election campaigning activities.

The inflation rate in April was checked at 0.56 percent, lower than the 0.78 percent reached in April last year, while trade surplus rose by 67 percent to $964.3 million in April from that in January.

The brokers said many foreign companies earlier stayed on the sidelines as they feared possible unrest during the electioneering of the three political parties.

"So far the campaigning activities are still under the government's control," Christiana said.

The Jakarta Stock Exchange (JSX) composite index surged 7.24 points to close at 664.84 Wednesday with 260.19 million shares changing hands at a total transaction value of Rp 489.49 billion ($203.95 million).

Gainers led losers by 61 to 58 with 71 counters remaining unchanged.

The market was closed Thursday in observance of Moslem New Year and the Ascension Day of Jesus Christ.

A Vickers Ballas Tamara Securities dealer said that though other regional markets closed mixed Wednesday, share prices on the JSX mostly gained ground.

Most blue chip stocks gained higher ground Wednesday with mostly heavily capitalized stock. Telkom rose by Rp 100 to close at Rp 3,700, Gudang Garam rose Rp 625 to Rp 10,325 and its rival cigarette maker Sampoerna increased Rp 100 to Rp 9,825.

Bank Negara Indonesia rose Rp 50 to Rp 1,550, Bank International Indonesia Rp 25 to Rp 1,825 and Bank Bira surged Rp 200 to Rp 3,700

Astra International's foreign price rose Rp 25 to 9,075 and its local price Rp 75 to Rp 6,200.

In the currency market, however, the Indonesian rupiah weakened against the dollar in slow trading Wednesday on the back of increased liquidity in the money market, brokers said.

Spot rupiah was at 2,429.50/29.75 compared with an opening of 2,425.50/26.50. (09)