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.