JSX hits record high

Urip Hudiono, The Jakarta Post, Jakarta

The Jakarta Stock Exchange (JSX) rose to a record high on Tuesday as investors scrambled to buy telecommunications, banking and cigarette blue chips following strong third quarter profit reports and easing oil prices.

The oil-price factor has triggered a rally in regional bourses, which had also created positive sentiment in the local market.

The Jakarta Composite Index surged by 2.1 percent, or 17.807 points, to an all-time high of 881.396 points from Monday's 863.589. A total of 2.1 billion shares worth Rp 1.7 trillion (US$187 million) were traded.

Among the stocks traded, gainers led decliners by more than three to one, with 107 stocks higher than their previous closing, and only 31 lower. A total of 76 stocks, meanwhile, remain unchanged.

"Investors are seeing a clear improvement in corporate performance, especially in the banking and telecommunications sector," said analyst David Ferdinandus from Anugerah Securities Indah.

Shares of telecom giant PT Telekomunikasi Indonesia led Tuesday's market rise, as they jumped by 5.2 percent to Rp 4,575, after the company reported a 14 percent rise in nine-month profit to Rp 5 trillion due to higher cellular and fixed-line revenues.

Shares of rival Indosat also rose by 3 percent to Rp 5,000, following the company's announcement of its nine-month profit that more than doubled to Rp 1.38 trillion.

The country's two largest banks also gained in their shares -- Bank Central Asia went up 3 percent to Rp 2,550, while Bank Mandiri was 3.1 percent higher at Rp 1,675.

Shares of cigarette titan H.M. Sampoerna ended up 2.5 percent at Rp 6,150, while Gudang Garam shares gained 0.8 percent to Rp 12,850.

"A drop in oil price has cranked up global stock markets, and consequently ours," David said. "It will affect cost production of companies, further improving their performance."

Analyst Jasso Winarto of the Sigma Research Institute said President Susilo Bambang Yudhoyono's new government had encouraged positive sentiment in the market.

The analysts, however, said the market rise would likely be temporarily, as investors continued to monitor company performances and the impact of the U.S. presidential election.

"The outcome of the U.S. presidential election, which will surely affect stock markets and the price of oil, is still unknown," Jasso said. "We will just have to wait and see."