RI shares end flat, index at record high on Telkom

RI shares end flat, index at record high on Telkom

Dow Jones,
Jakarta

Indonesian shares ended flat on Wednesday, with late gains in
Telekomunikasi Indonesia (Telkom) and nickel miner Inco helping
the main index hit a fresh closing high, dealers said.

"It's a dull and thin market," said a trader with a European
securities firm. Many investors have already squared their
positions ahead of the New year holiday, with sporadic year-end
window dressing keeping the main index in positive territory, she
said.

Dealers said concerns over the rising death toll from the
massive earthquake and tsunamis also prevented investors from
taking up strong buying positions.

The military was preparing to dig mass graves on Wednesday on
Indonesia's battered Sumatra Island, where the government said
the official death toll from an earthquake and tsunamis had
reached more than 32,000.

The Jakarta Stock Exchange Composite Index ended up 0.51
points, or 0.1 percent, to hit a record high of 1,004.43.

Decliners, however, led gainers 76 to 43, with 92 stocks
unchanged.

Volume was 1.7 billion shares valued at Rp 855 billion,
compared with 1.1 billion shares valued at Rp 845 billion on
Tuesday.

Bellwether Telekomunikasi Indonesia gained 1 percent at Rp
4,900 on a rebound and year-end window dressing.

International Nickel Indonesia, or Inco, rose 1.6 percent to
Rp 11,250 on expectations of higher 2004 earnings, thanks to an
increase in commodity prices.

Also higher were shares in Bank Rakyat Indonesia, which ended
up 1.8 percent at Rp 2,900.

Profit-taking hit Bank Central Asia, the nation's second-
largest lender, which fell 1.7 percent to Rp 2,975, and Bank
Negara Indonesia, which lost 2.9 percent to Rp 1,700.

Dealers said they expect the market Thursday to trade slightly
lower on a price correction ahead of the New Year holiday.

Meanwhile, the rupiah ended lower as companies seeking to pay
maturing offshore debt and multinational corporations
expatriating profits bought the U.S. unit.

The dollar closed at Rp 9,335, up from Rp 9,325 on Tuesday.
The greenback hit an intraday low of Rp 9,295.

Sentiment toward the rupiah remained weak amid renewed worries
about the impact on the nation's economy next year from Sunday's
earthquake and tsunamis, said a trader with a state-owned bank.

Indonesia's cash-strapped government is counting on massive
international humanitarian assistance and reconstruction aid for
Aceh in order to avoid expanding a budget deficit that is already
expected to surpass earlier estimates of Rp 26.3 trillion for
2004.

The financial burden of addressing a disaster that official
estimates indicate will eventually result in a death toll of up
to 40,000 and half a million homeless is a huge blow for a
government committed to reach economic growth of 5.5 percent next
year. The government expects the economy this year to grow by
5.0 percent.

Dealers expect the dollar to trade between Rp 9,325 and Rp
9,375 on Thursday.