RI shares end at record high, cigarette stocks lead

RI shares end at record high, cigarette stocks lead

Dow Jones, Jakarta

Indonesian shares ended higher Tuesday, with foreign-led buying in cigarette makers Hanjaya Mandala Sampoerna and Gudang Garam driving the main index to close at a fresh record high, dealers said.

"There is a big possibility that the main index will hit the 1000 level by the end of the year," said Laksono Widodo, analyst with Macquarie securities in Jakarta.

Analysts said the underlying sentiment toward Indonesian shares is positive due to expectations of higher 2004 corporate earnings and a better-performing economy under the new government.

The Jakarta Stock Exchange Composite Index ended up 13.681 points, or 1.4 percent, to hit an all-time high of 977.767.

Gainers led decliners 91 to 47, with 85 stocks unchanged.

Volume was 2 billion shares valued at Rp 1.66 trillion, compared with 1.9 billion shares valued at Rp 1.3 trillion Monday.

Sampoerna ended up 5.5 percent at Rp 6,750 on a rebound, after falling 7.8 percent in the six previous sessions. Gudang Garam rose 2.3 percent to Rp 13,300, also on a rebound.

Dealers attributed buying in the cigarette blue chips to expectations that the companies will book higher sales in 2004.

Car maker Astra International gained 2.9 percent to Rp 9,000 on the company's plans to export its multipurpose vehicle Kijang Innova as part of efforts to boost sales.

Dealers said bargain-hunters bought back shares of Semen Gresik after the nation's largest cement maker said it expects 2004 net profit to rise 19 percent to Rp 450 billion from Rp 378.8 billion a year ago.

Bellwether Telekomunikasi Indonesia ended 1 percent higher at Rp 5,000 on a rebound.

Dealers said they expect the market Wednesday to trade flat to slightly higher, with profit-taking by local funds likely to cap gains.

Meanwhile, ther rupiah ended lower for the second straight session Tuesday due to growing demand for the U.S. dollar from local companies, dealers said.

The dollar closed at Rp 9,028, up from its close Monday at Rp 9,013.

"There were stronger bids from local companies to buy the greenback after recent falls," said a trader with a state-owned bank. He added that many local companies accumulated the U.S. currency to settle their offshore obligations by the end of the month.

The dollar also gained ground against the rupiah as foreign market participants covered their short positions on the back of the U.S. unit's rebound against other major currencies, dealers said.

However, dealers said underlying sentiment for the rupiah remains positive due to expectations of a better-performing economy under the new government.

Elsewhere in Asia, stock markets closed mostly higher, but prices slipped both in Tokyo and Hong Kong.

The Australian share market posted its fifth consecutive record high. The benchmark S&P/ASX 200 index rose 4.5 points or 0.1 percent, to a record closing high of 3,931.30.

Tokyo's Nikkei Stock Average of 225 issues lost 78.64 points, or 0.72 percent, to 10,899.25 points. On Monday, the index gained 144.14 points, or 1.33 percent.

In Hong Kong, the blue-chip Hang Seng Index slipped 6.86 points, or 0.04 percent, to 14,060.05. On Monday, the index had gained 171.88 points, or 1.22 percent.

In Singapore, shares closed lower on profit-taking. The Straits Times Index fell 11.06 points, or 0.5 percent, to 2,027.66.

In Taipei, Taiwan shares closed higher. The Weighted Price Index rose 59.50 points, or 1 percent, to 5,844.76.

In Wellington, New Zealand shares closed higher for the fifth straight session. The NZSX-50 Gross Index rose 2.49 points, or 0.08 percent, to 2,990.79.

In Manila, Philippine shares closed at a seven-week high, boosted by a higher-than-expected economic growth for the third quarter. The 30-company Philippine Stock Exchange Index rose 16.86 points, or 0.9 percent, to 1,830.96.

In Kuala Lumpur, Malaysian shares closed marginally higher. The Composite Index of 100 blue chips rose 1.29 points, or 0.1 percent, to 917.19.

In Bangkok, Thai shares closed little changed. The Stock Exchange of Thailand Index fell 0.52 point, or 0.08 percent, to 656.73.