JP/13/Market

Shares end higher on blue chip buying

Shares ended higher on Thursday as institutional funds continued to buy many blue chips to improve their equity portfolio by the end of this month, dealers said.

They added that gains across regional markets provided support, but buying was capped by lingering concerns about the rupiah's weakness and political uncertainty ahead of the July presidential polls.

The Jakarta Stock Exchange's main index ended up 9.595 points, or 1.4 percent, at 709.351.

Gainers led decliners 74 to 32, with 69 stocks unchanged. Volume was 1.5 billion shares valued at Rp 728 billion.

Cigarette maker Gudang Garam led the gainers, rising Rp 250, or 1.9 percent, to Rp 13,650 after the company said it will pay out a dividend for 2003 of Rp 300 per share.

Bellwether Telekomunikasi Indonesia, or Telkom, rose Rp 150, or 2 percent, to Rp 7,150 on expectations the company will file its 2003 audited accounts with the U.S. Securities & Exchange Commission by June 28 to avoid a possible delisting from the New York Stock Exchange.

Also higher were shares in Bank Mandiri, which ended up Rp 25, or 2.3 percent, to Rp 1,125 and retailer Ramayana Lestari Sentosa which jumped Rp 175, or 4.2 percent, to Rp 4,325.

Garam's rival Hanjaya Mandala Sampoerna bucked the trend, falling Rp 50, or 1 percent, to Rp 4,950.

Dealers expect the market Friday to trade slightly higher on further window dressing.

Meanwhile, the rupiah ended steady as persistent dollar demand from local companies prevented the local currency from taking advantage of the dollar/yen slide, dealers said.

The dollar closed at Rp 9,430, unchanged from its close Wednesday after trading between Rp 9,410 and Rp 9,440 intraday. -- Dow Jones