JP/13/Stock

JP/13/Stock

RI shares end mixed, but index up at new high

Dow Jones Jakarta

Indonesian shares ended mixed on Thursday, but gains in selected blue chips pushed the main index to a fresh all-time closing high, dealers said.

Investors continued accumulating cigarette and banking stocks, but profit-taking dragged telecommunications blue chips down along with other small stocks, they said.

Underlying sentiment, however, remains positive due to a fall in interest rates. Many analysts predict that the benchmark weighted average rate of the one-month Bank Indonesia notes will fall further after falling to 8.06 percent in a weekly auction on Wednesday from 8.24 percent previously, amid easing inflationary pressure and ample liquidity among banks.

The Jakarta Stock Exchange Composite Index ended up 6.890 points, or 0.9 percent, at 763.453, but off an intra-day high of 764.042.

The index's last closing high was 729.151 points, recorded July 10, 1997.

Decliners led gainers 82 to 63, with 71 stocks unchanged.

Volume stood at 2.03 billion shares valued at Rp 1.154 trillion (US$137 million).

Dealers said investors bought bank shares, which were relatively cheaper than other stocks.

Bank Mandiri, the nation's largest bank by assets, rose Rp 100, or 8 percent, to Rp 1,350, and Bank Rakyat Indonesia gained Rp 50, or 3.2 percent, at Rp 1,600, and Bank Central Asia increased Rp 25, or 0.7 percent, to Rp 3,725.

Cigarette maker PT Gudang Garam rose Rp 300, or 1.9 percent, to Rp 15,600 on hopes of higher sales after the government kept the cigarette excise tax unchanged this year.

Profit-taking has hit telecommunications blue chips after recent sharp gains.

PT Telekomunikasi Indonesia (Telkom), the largest stock by market capitalization, fell Rp 100, or 1.4 percent, to Rp 7,300, and its rival PT Indonesia Satellite Corp. (Indosat) dropped Rp 200, or 1.2 percent, to Rp 16,550.

Tin miner PT Timah edged down Rp 50, or 1.9 percent, to Rp 2,475, and supermarket and department store operator PT Matahari Putra Prima lost 3.5 percent, or Rp 25, at Rp 700.

Dealers said they expect the market to remain higher Friday, but looming profit-taking may slow the rise.

The rupiah ended lower on Thursday as the dollar strengthened across Asia.

The dollar closed at Rp 8,365, up from its close Wednesday at Rp 8,340.

Players took their cue from the dollar's regional strength, which came on the back of new measures introduced by the Korean authorities to restrict offshore selling of dollars for won via the non-deliverable forwards market.

Under the plan, Korean financial institutions can't buy dollars via the NDF market from offshore players of more than 10 percent of their purchases as of Wednesday.

Indonesia's booming stock market means the rupiah should find support Friday as foreign investors buy rupiah for dollars to fund their share purchases.

Dealers expect the dollar to trade between Rp 8,350 and Rp 8,380 Friday.