Jakarta shares end higher; Telkom, Inco lead gains

Jakarta shares end higher; Telkom, Inco lead gains

Dow Jones, Jakarta

Indonesian shares ended higher on Friday, with gains in telecommunications and mining blue chips boosting the main index, dealers said.

Overall sentiment, however, remained cautious due to losses in many Asian markets and the prolonged political uncertainty ahead of the presidential runoff in September, they added.

"Buying in telecom shares pushed the main index higher," said a trader with BNI Securities.

The Jakarta Stock Exchange's composite index ended up 4.849 points, or 0.6 percent at 766.367, up from an earlier low of 757.605.

Gainers led decliners 91 to 30, while 81 stocks were unchanged.

Volume was 1.65 billion shares valued at Rp 630 billion (US$69.5 million).

Heavyweight Telekomunikasi Indonesia rose Rp 100, or 1.3 percent, to Rp 7,850 on a rebound and expectations of higher first-half earnings. Telkom is expected to announce its first- half earnings next month.

Nickel miner International Nickel Indonesia, or Inco, gained Rp 850, or 2.5 percent, at Rp 34,400, after the company reported its first-half net profit more than tripled to $126 million from $36.8 million a year earlier.

Also higher were shares in carmaker Astra International, up Rp 50, or 0.9 percent, at Rp 5,850 on bargain-hunting and expectations of higher first-half revenue due to an increase in car sales.

Shares in cigarette maker Hanjaya Mandala Sampoerna succumbed to profit taking, down Rp 150, or 0.6 percent, at Rp 5,650.

Dealers said they expect the market on Monday to trade flat to slightly higher led by further buying in Telkom.

Meanwhile, the rupiah ended flat on Friday as the yen's losses against the dollar dragged the rupiah down after early gains, traders said.

After hitting an intraday low of 9,020, the dollar closed at Rp 9,070, unchanged from its close on Thursday.

The rupiah gained early in the day as investors bought the local currency ahead of an auction next week of Rp 2 trillion in government treasury bonds.

But the dollar's rise to 110 against the Japanese currency helped push many Asian regional currencies lower.

Indonesian stocks, which finished 0.6 percent higher on Friday at 766.367 points, were unable to help sustain the rupiah's early rise.

The dollar is expected to trade in a range between Rp 9,050 and Rp 9,120 next week, traders said. Large swings in the currency aren't expected until presidential elections on Sept. 20.

Meanwhile, Asian stock markets closed mostly lower on Friday, with the key index in Tokyo falling for a second straight session following weakness in technology stocks.

Tokyo's Nikkei Stock Average of 225 issues fell 97.71 points, or 0.87 percent, at 11,187.33 points on Friday - a seven-week closing low since the Nikkei finished at 11,027.05 on June 3. On Thursday, the benchmark index fell 148.82 points, or 1.30 percent.

Singapore shares also ended lower. The benchmark Straits Times Index fell 12.71 points, or 0.68 percent, to 1,850.26.

Bucking the trend was the Hong Kong Stock Exchange, where prices edged higher on bargain hunting

The key Hang Seng Index rose 32.78 points, or 0.26 percent, to 12,352.99. On Thursday, the index fell 74.90 points, or 0.60 percent.

In Taipei, Taiwan shares closed slightly lower as investors remain concerned over the technology sector's performance in the second half of the year. The Weighted Price Index fell 14.11 points, or 0.3 percent, to 5,373.85.

In Seoul, South Korean shares closed lower as investors turned cautious amid a bleak outlook for second half corporate earnings. The Korea Composite Stock Price Index, or Kospi, fell 5.12 points, or 0.7 percent, to 737.51.

In Kuala Lumpur, Malaysian shares closed lower. The weighted Composite Index of 100 blue-chip stocks fell 1.17 points, or 0.1 percent, to 838.20.

In Bangkok, Thai shares closed slightly lower. The Stock Exchange of Thailand Index fell 1.65 point, or 0.3 percent, to 648.47.