Jakarta shares index off to new high

Jakarta shares index off to new high

Dow Jones, Jakarta

Indonesian shares ended at a record high on Friday after Moody's Investors Service changed the outlook on certain key currency ratings to positive from stable, dealers said.

Moody's said that the outlook change was prompted by the continuing improvement in Indonesia's debt ratios, both in terms of foreign currency debt and the government's overall debt position.

Dealers also attributed buying to expectations that the economy in 2005 will continue to grow at a healthy rate after slightly-better-than expected 2004 economic growth.

Indonesia's economy expanded 5.1 percent in 2004.

The growth rate beat the government's and private sector analysts' predictions.

The government had projected the economy would grow 4.8 percent in 2004, while the average of estimates from six economists polled by Dow Jones put Indonesia's economic growth at 4.9 percent.

"We had tons of positive sentiment here," said Mohammad Reza, an analyst with Kuo Capital Securities. He expects the main index to head for new resistance at 1,150 points.

The Jakarta Stock Exchange Composite Index ended up 9.515 points, or 0.9 percent, to reach a record high of 1,092.49 point.

Gainers led decliners 85 to 38, with 83 stocks unchanged.

Volume was 1.85 billion shares valued at Rp 1.7 trillion, compared with 3.8 billion shares valued at Rp 2.9 trillion on Thursday.

Dealers said investors continued to buy shares of companies that are expected to report, or have reported, solid 2004 earnings.

Nickel miner International Nickel Indonesia, or Inco, led the gainers, up 9.4 percent to Rp 14,600, after it reported 2004 net profit more than doubled due to an increase in sales.

Carmaker Astra International gained 3.7 percent to Rp 11,200 after the company said its 2004 sales rose 27 percent on year.

Also higher were shares in gold and nickel miner Aneka Tambang, which jumped 8.3 percent to Rp 2,090.

Astra and Aneka Tambang are expected to announce their 2004 earnings later this month or in early March.

Dealers said they expect the market on Monday to trade slightly higher on follow-through buying in select blue chips, with profit-taking by local retail investors likely to offset gains.