Jakarta stocks end higher despite natural disaster
Jakarta stocks end higher despite natural disaster
Dow Jones, Jakarta
Indonesian shares ended higher Monday as fund managers continued to buy telecommunications and bank blue chips to improve their books before year-end, dealers said.
They said investors shrugged off worries that that the massive earthquake and tsunamis over the weekend could further hurt the nation's budget, which is already in deficit.
Rescue crews on Monday combed seaside villages in northwestern Indonesia for survivors from a massive undersea earthquake that killed at least 4,448 people in Indonesia and left more than a million homeless, the Health Ministry said.
The Jakarta Stock Exchange Composite Index ended up 11.012 points, or 1.1 percent , at 997.518.
Gainers led decliners 62 to 50, with 85 stocks unchanged.
Volume was 1.5 billion shares valued at Rp 936 billion (US$107 million), compared with 1.4 billion shares valued at Rp 833.6 billion on Thursday. The market was closed on Friday for a holiday.
Bellwether Telekomunikasi Indonesia gained 1 percent to Rp 4,875 and rival Indonesian Satellite rose 2.7 percent to Rp 5,800 on year-end window dressing and expectations of higher 2004 earnings.
Bank Negara Indonesia rose 7.7 percent to Rp 1,750 on expectations that the nation's third-largest lender will perform better next year.
Pulp maker Pabrik Kertas Tjiwi Kimia jumped 19 percent to Rp 2,375, boosted by year-end window dressing and expectations that the company will perform better next year after a debt restructuring.
"Buying in these select blue chips could also show that investors expect investments here to remain attractive after the earthquake," said a trader with Paramitra Securities.
Dealers said they expect the market to trade higher Tuesday on follow-through buying in telecommunications blue chips.
Meanwhile, the Indonesian rupiah ended steady on Monday on concerns that the central bank may intervene in the market to prevent the U.S. dollar from rising following Sunday's massive earthquake, dealers said.
The dollar closed at Rp 9,305, unchanged from its close on Thursday. Indonesian markets were closed on Friday for a holiday. The dollar hit an intraday low of Rp 9,208 and a high of Rp 9,315.
Dealers said the dollar managed to get off its earlier low amid growing worries over possible aftershocks, but easing dollar demand from local companies supported the rupiah.
Players were also worried that the central bank might intervene in the market to defend the rupiah after the earthquake, which is expected to hurt the country's budget deficit.
"It's a dull and thin market," said a trader with a state- owned bank. Many investors, he said, are on the sidelines ahead of the New Year holiday.
Dealers expect the dollar to trade between Rp 9,275 and Rp 9,325 on Tuesday.