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.