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.