Jakarta shares up led by gains in palm oil stocks

Jakarta shares up led by gains in palm oil stocks

Dow Jones, Jakarta

Indonesian shares ended marginally higher on Tuesday, led by
gains in crude palm oil stocks on expectations of solid 2005
earnings due to rising demand from China and India, dealers said.

They said overall sentiment was cautious given the renewed
weaknesses of the rupiah against the U.S. dollar.

"The weaker rupiah fueled profit taking, offsetting gains of
the main index," said a trader with Paramitra securities.

The Jakarta Stock Exchange Composite index ended 0.3 percent
higher, or 3.05 points, at 1,037.63.

Gainers led decliners 55 to 50, with 70 stocks unchanged.

Volume was 750 million shares valued at Rp 900 billion,
compared with 700 million shares valued at Rp 1.1 trillion on
Monday.

CPO producer Astra Agro Lestari jumped 5.9 percent to Rp 4,950
on expectations of improved 2005 sales and a higher interim
dividend.

Astra Agro's rival London Sumatra advanced 4.6 percent to Rp
2,275.

Shares in gas and oil producer Medco Energi gained 4.4 percent
to Rp 3,525 on expectations of solid 2005 earnings due to high
oil prices.

Gas distributor Gas Negara rose 3.4 percent to Rp 3,675 ahead
of the government's plan to sell a 7.1 percent stake in the
company next month.

Profit taking hit automotive company Astra International,
which lost 2.1 percent to Rp 9,150 after gaining 3.3 percent on
Monday.

Traders said Indonesian shares will likely continue to gain
ground on Wednesday led by further buying in plantation and
mining blue chips.

On the currency market, the rupiah lost further ground on the
dollar gaining strength globally, and because of dollar demand
from local companies, dealers said.

The dollar closed at Rp 10,275, versus Rp 10,230 on Monday.

"The dollar's rise against major rivals was certainly the main
reason for the rupiah's slide (against the dollar) today," a
dealer with a local bank said.

The U.S. unit's price against the Japanese currency usually
influences its direction against most other Asian currencies.

Local companies also accumulated the dollar to pay offshore
obligations maturing at the end of the month, dealers said.

Dollar inflows from foreign investors also slowed down causing
the rupiah to weaken, they said.

The dollar is expected to trade between Rp 10,250 and Rp
10,280 on Wednesday.