Jakarta index ends higher as Telkom, mining shares rebound
Jakarta index ends higher as Telkom, mining shares rebound
Dow Jones/Jakarta
Indonesian shares ended higher on Friday led by bargain hunting in telecommunication and mining blue chips after the main index fell in the previous three sessions, dealers said.
But a trader with a local securities firm said that although the market rose, overall sentiment was cautious amid concerns over the rupiah which remained weak despite government plans to increase fuel prices early next month.
The Jakarta Stock Exchange Composite index ended up 0.6 percent, or 5.820 points, at 1056.726. The main index had fallen 5 percent in the previous three sessions due to profit taking and concerns over high fuel prices.
Gainers beat decliners 51 to 45, with 68 stocks unchanged.
Volume was 955 million shares valued at Rp 845 billion, compared with 915 million shares valued at Rp 1.1 trillion on Thursday.
Bellwether Telekomunikasi Indonesia rose 3 percent to Rp 5,150 on bargain hunting after falling 12 percent in the previous three sessions.
Telkom's rival, Indonesian Satellite, gained 1 percent to Rp 5,100.
Dealers said investors continued to buy shares in mining companies on expectations of solid 2005 earnings as they earn revenue mostly in U.S. dollars.
Nickel miner International Nickel Indonesia, or Inco, ended 1.7 percent higher at Rp 15,250 and rival Bumi Resources rose 2.4 percent to Rp 850.
However, dealers said further losses in several consumer blue chips offset gains on the main index.
Automotive company Astra International fell 1.5 percent to Rp 10,150 on worries that high fuel prices will discourage people from buying cars. Astra on Thursday fell 3.3 percent.
Cigarette maker Gudang Garam lost 2.8 percent to Rp 10,300, on expectations of lower 2005 sales as high fuel prices erode consumers' purchasing power.
Dealers said they expect shares to trade higher Monday on a further rebound.
The Indonesian rupiah ended lower on Friday on capital outflows from the local stock market and a lack of dollar supply, dealers said.
The dollar closed at Rp 10,155 versus Rp 10,065 on Thursday.
"Dollar bids mostly came from custodian banks, likely because their foreign clients were taking their money out of the country," a dealer with a foreign bank said.
Foreigners sold Indonesian stocks the previous three sessions on concerns a fuel price hike that the government plans to implement next month will hurt corporate profits.
The Jakarta Stock Exchange's main index, however, rebounded 0.6 percent on Friday to 1056.726 points.
Dealers said market participants refrained from selling the greenback after it found solid support around Rp 10,000 on Wednesday.
"Many local companies are also keen to buy the dollar around Rp 10,000, reflecting that their confidence in the rupiah remains shaky," a dealer with a local bank said.
Dealers expect the dollar to try testing Rp 10,200 on Monday, with support expected at Rp 10,100.