RI shares end higher on late rebound

RI shares end higher on late rebound

Dow Jones, Jakarta

Indonesian shares ended marginally higher Friday as a late rebound in cement and automotive blue chips reversed earlier losses, dealers said.

Overall sentiment remained cautious due to some profit taking, but expectations that the presidential elections Monday would proceed smoothly spurred several local institutional funds to buy back select blue chips.

"If the polls proceed peacefully, the main index could gain further Tuesday," said a trader with Kuo Capital Securities.

Indonesian markets will be closed Monday for the second round of the presidential elections.

After staying in negative territory for most of the session, the Jakarta Stock Exchange Composite Index ended up 1.562 points, or 0.2 percent, at 814.626.

Gainers led decliners 53 to 47, with 93 stocks unchanged.

Volume was 915 million shares valued at Rp 853 billion (US$94.6 million).

Semen Gresik, the nation's largest cement producer, rose Rp 150, or 1.5 percent, to Rp 10,400 on renewed hopes that it will complete the audit of its 2002 and 2003 accounts.

Gresik's rival Indocement Tunggal Prakarsa gained Rp 25, or 1.3 percent, at Rp 1,925 on a rebound.

Carmaker Astra International ended up Rp 150, or 2.2 percent, to Rp 6,950 on expectations of higher 2004 car sales after the company marketed new multipurpose vehicle Kijang Innova early this month.

Crude palm oil producer London Sumatra Indonesia leapt Rp 275, or 2.2 percent, to Rp 1,400 on expectations that the company will split its shares to boost the trading liquidity on the Jakarta bourse.

Bellwether Telekomunikasi Indonesia, however, still succumbed to profit taking, down Rp 100, or 1.2 percent, to Rp 8,150.

Dealers said they expect the market to trade higher Tuesday on expectations of peaceful elections Monday. The main index likely to trade at between 800 and 830 range.

Meanwhile, the rupiah ended lower against the dollar Friday on profit-taking following gains Thursday, dealers said.

The dollar finished at Rp 9,035, up from its previous close at Rp 9,010.

The U.S. currency fell to an intraday low of Rp 9,000 as the local currency received a boost from market optimism that Indonesia's presidential vote on Monday will be smooth.

But market participants then bought back the dollar to take profit as it found support at that psychologically important level, dealers said.

"The dollar is still expected to fall further next week if the election runs smoothly," a dealer said. "Players want to lock in their profit now."

Dealers expect the dollar to fall to Rp 8,800 next week if the election, which will pit President Megawati Soekarnoputri against her former security minister Susilo Bambang Yudhoyono, goes smoothly.