RI shares end higher on rebound, debt relief plan

RI shares end higher on rebound, debt relief plan

Dow Jones, Jakarta

Indonesian shares ended higher on Thursday on a rebound, boosted
by news that international lenders have formally approved plans
to offer debt relief to tsunami-hit nations, dealers said.

The Paris Club of the world's wealthiest creditor nations
Wednesday agreed to offer countries hit by the Dec. 26 tsunami a
moratorium on debt repayments.

`Indonesia is the country worst affected by the earthquake and
subsequent tsunami.

The Jakarta Stock Exchange Composite Index ended up 13.09
points, or 1.3 percent, at 1021.67 points. The main index had
fallen 2.3 percent in the previous three sessions on profit-
taking.

Dealers said the firmer rupiah against the U.S. dollar also
spurred buying.

"The market recovered after recent falls," said a trader with
Kuo Capital Securities.

Gainers led decliners 97 to 45, with 63 stocks unchanged.

Volume was 2.4 billion shares valued at Rp 1.95 trillion,
compared with 1.65 billion shares valued at Rp 1.4 trillion on
Wednesday.

Bellwether Telekomunikasi Indonesia led gainers, closing up
3.1 percent at Rp 4,975 on bargain hunting after falling 5.9
percent in the previous three sessions.

Telkom's rival Indonesia Satellite gained 0.9 percent to close
at Rp 5,950 on a rebound.

Carmaker Astra International gained 4.2 percent to close at Rp
9,950 on expectations of higher 2004 earnings due to an increase
in car sales.

Bucking the trend was gold and nickel miner Aneka Tambang,
which closed down 1.1 percent at Rp 1,730.

Dealers said they expect the market to trade higher on
Thursday led by follow-through buying in Telkom.

Meanwhile, the rupiah finished higher, in tandem with a global
weakening of the dollar after the U.S. posted a record trade
deficit.

The rupiah closed at 9,145 per dollar, strengthened from 9,185
on Wednesday.

The U.S. unit fell sharply against its major rivals after data
released late on Wednesday showed the U.S. trade deficit in
November at a worse-than-expected at $60.3 billion.

"The rupiah benefited from the dollar sell-off across Asia
today," a dealer said.

News that the Paris Club, comprising the world's wealthiest
creditor nations, Wednesday formally approved a move to offer
countries hit by the Asian tsunami a moratorium on debt
repayments also boosted sentiment on the rupiah, dealers said.

On Thursday, Senior Economic Minister Aburizal Bakrie said
Indonesia received a three-month moratorium on debt repayments of
around $700 million to $750 million.

The moratorium means dollar demand for government debt
repayments will be reduced, giving the local currency a boost.

However, Indonesian officials have also expressed a preference
for grants over debt moratoriums.

Finance Minister Yusuf Anwar on Thursday said the government
will only accept a debt moratorium if conditions are favorable to
the country.