RI shares end 2.7% up on regional gains, rupiah
RI shares end 2.7% up on regional gains, rupiah
Dow Jones, Jakarta
Indonesian shares ended sharply higher Wednesday on foreign
buying, boosted by gains across Asian markets amid easing oil
prices, dealers said.
The rebound of the rupiah and softer on-month inflation
figures in August also spurred investors to buy blue chips, they
said.
"There were also renewed expectations that the forthcoming
presidential runoff will proceed smoothly," said a trader with
Kuo Capital Securities.
The Jakarta Stock Exchange Composite ended up 20.392 points,
or 2.7 percent, at 775.096, the highest closing level since July
7.
Gainers led decliners 96 to 26, with 69 stocks unchanged.
Volume was 1.93 billion shares valued at Rp 1.32 trillion
(US$141 million).
The dollar was trading lower at 9,330 rupiah compared with
9,370 Tuesday's close on a decreasing dollar demand from local
companies. Meanwhile, inflation in August only rose 0.09 percent
on month, far below economists' forecast of 0.57 percent.
Bellwether Telekomunikasi Indonesia was up Rp 300, or 3.9
percent, at Rp 7,950 on the company's planned 2-for-1 stock split
to boost trading liquidity on the Jakarta bourse.
Carmaker Astra International rose Rp 450, or 7.1 percent, to
Rp 6,800 on news that the government chose its consortium to
compete with four other bidders to purchase a stake in Bank
Permata.
Cigarette maker Gudang Garam gained Rp 450, or 3.5 percent, at
Rp 13,200, and Bank Mandiri jumped Rp 50, or 4 percent, at Rp
1,300.
"I see that foreign funds are returning to the market," said a
trader with a European securities firm.
Dealers said they expect the market to remain higher Thursday
on further buying in most blue chips.
Meanwhile, the rupiah closed higher Wednesday as investors
took profit in the U.S. unit after gains in the previous five
sessions.
The dollar ended at Rp 9,330, down from its close of Rp 9,370
Tuesday. The greenback hit an intraday high of Rp 9,383.
Dealers also attributed the increase in the rupiah to the fact
that dollar demand from local companies abated.
"It's a fair dollar correction after recent gains," said a
trader with a foreign bank. The dollar rose 1.1 percent in the
previous five sessions.
Dealers, however, said the underlying sentiment for the rupiah
would remain weak ahead of the presidential runoff Sept. 20.
Bank Indonesia Governor Burhanuddin Abdullah told reporters he
expects the pressure on the rupiah to continue until the
political event is completed.
"I think the rupiah, however, will regain ground after the
presidential runoff and whenever the political picture is
clearer," he added.
Dealers expect the rupiah to continue to rebound Thursday.
However, they said the pair is unlikely to break below a 9,300
resistance.