Main index surges at JSX with gains in Telkom, BCA
Main index surges at JSX with gains in Telkom, BCA
Dow Jones, Jakarta
Indonesian shares ended higher on Monday, with gains in Bank
Central Asia (BCA) and Telekomunikasi Indonesia (Telkom), driving
the main index to surge to a new closing high, dealers said.
"Gains of the main index, however, wasn't as huge as
Friday's," said a trader with Kuo Capital Securities.
He added that lingering concerns over rising oil prices
spurred some local retail investors to take profit, offsetting
earlier gains.
The Jakarta Stock Exchange Composite Index ended up 3.685
points, or 0.3 percent, at a new high of 1151.56. The main index
Friday rose 1.2 percent.
Gainers led decliners 95 to 81, with 50 stocks unchanged.
Volume was 5 billion shares valued Rp Rp 3.6 trillion,
compared with 7 billion shares valued at Rp 23.1 trillion on
Friday.
Dealers attributed the sharply higher value and volume on
Friday to a block sale of shares in cigarette maker Hanjaya
Mandala Sampoerna, which were bought by Philip Morris
International.
Earlier in the week, Philip Morris said it would buy a 40
percent stake, or 1.75 billion shares, in Sampoerna for Rp 18
trillion.
BCA, the nation's second-largest lender by assets, rose 3.4
percent to Rp 3,825 on expectations that the government will sell
a 5 percent stake in the bank Tuesday at a premium.
Telkom gained 2.3 percent to Rp 4,525 and rival Indonesian
Satellite rose 2.1 percent to Rp 4,875 on expectations they will
report higher 2004 earnings.
Both Telkom and Indosat are expected to announce their
earnings later this month.
Profit-taking hit gas and oil producer Medco Energi, which
fell 4.4 percent to Rp 2,700, and food company Indofood Sukses
Makmur, which slid 3 percent to Rp 1,280.
Dealers expect the market to trade slightly lower on Tuesday
on profit-taking after gains in the previous two sessions.
The rupiah meanwhile, ended slightly lower on the dollar's
rise against most regional currencies in anticipation of a
further rate hike in the U.S.
The dollar closed at Rp 9,405, up from Rp 9,370 on Friday.
The U.S. Federal Open Market Committee is widely expected to
increase the federal funds target rate by 25 basis points to 2.75
percent at a meeting on Tuesday.
"Expectations of a further Fed rate hike drove the dollar
higher against most regional rivals today," a dealer with a
foreign bank said.
The recent rise in oil prices to new record highs hurt
sentiment on the rupiah as dollar demand is expected to increase
to finance the country's fuel imports, dealers said.
For the time being, Philip Morris's move seems to be the only
piece of news helping the rupiah, dealers added.
In an interview with the Asian Wall Street Journal, Putera
Sampoerna, head of the family which sold its control of HM
Sampoerna to Philip Morris, dismissed concerns the family is
pulling out of Indonesia. Sampoerna said his family will reinvest
in Indonesia, likely in agriculture or infrastructure.
Still, it may take time for the family to realize its new
investments in the country, and the real impact of Philip
Morris's purchase on the rupiah remains unclear, dealers said.
They expect the dollar to trade between Rp 9,380 and Rp 9,425
on Tuesday.