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.