RI shares end up on late buying

RI shares end up on late buying

Dow Jones, Jakarta

Indonesian shares ended higher on Wednesday as late buying in Telekomunikasi Indonesia and Bank Mandiri drove the main index to another closing high, dealers said.

News that inflation in Indonesia was steady in November also fueled buying, they said.

"The stable inflation could support economic growth and may prevent the central bank from raising interest rates," said an analyst with a foreign securities firm.

After staying in negative territory for most of the session, the Jakarta Stock Exchange Composite Index ended up 8.432 points, or 0.9 percent, to hit an all-time record high of 986.199.

Gainers led decliners 74 to 58, with 93 stocks unchanged.

Volume was 3.5 billion shares valued at Rp 2.2 trillion, compared 2 billion shares valued at Rp 1.66 trillion on Tuesday.

Inflation in Indonesia held steady at 6.2 percent in November, defying expectations that higher prices for foodstuffs, clothing and transportation during the Muslim Idul Fitri holiday could drive the figure higher, the official Central Bureau Of Statistics said.

Among gainers, Bellwether Telekomunikasi Indonesia rose 2 percent to Rp 5,100 on bargain-hunting and expectations of higher 2004 revenue due to rising contribution from its cellular operations.

Bank Mandiri, the nation's largest lender, rose 4.1 percent to Rp 1,900 on expectations that the government will sell another 10 percent stake in the bank later this year.

Cigarette maker Sampoerna gained 2.2 percent at Rp 6,900, and rival Gudang Garam ended up 0.4 percent at Rp 13,400, both on expectations of higher 2004 sales.

Indonesian Satellite, however, succumbed to profit-taking, ending down 0.9 percent at Rp 5,700.

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

The rupiah ended slightly lower as dollar demand from local importers remained strong ahead of the year-end, dealers said.

The dollar closed at Rp 9,035, up from its close on Tuesday at Rp 9,028.

Several dealers said that state-owned oil and gas company Pertamina was among the main dollar buyers. Pertamina likely needs more dollars amid rising fuel imports ahead of the Christmas and New Year festivities, they said.

Dealers expect the dollar to trade between Rp 9,000 and Rp 9,040 on Thursday.

"I think the dollar will continue to trade around the current level for now after Bank Indonesia officials said recently that the central bank is quite happy if the dollar is around Rp 9,000," a dealer with a local bank said.

Meanwhile, in Tokyo, Japan's Nikkei Stock Average of 225 issues dropped 115.00 points, or 1.06 percent, to 10,784.25. On Tuesday, the index shed 78.64 points, or 0.72 percent.

Investors sold shares on poorer-than-expected Japanese industrial production data for October, Wall Street's decline on Tuesday and the U.S. dollar's weakness against the Japanese yen, which makes exports from Japan more expensive.

In Hong Kong, the share market rose on Wednesday as fund buying outweighed concerns about reports that a major listed company was under investigation for possible fraud.

The blue-chip Hang Seng Index climbed 102.75 points, or 0.73 percent, to 14,162.80. On Tuesday, the Hang Seng dropped 6.86 points, or 0.04 percent.

In Bangkok, Thai shares fell slightly as traders sold stocks that had gained. The Stock Exchange of Thailand Index edged down 1.29 points, or 0.2 percent, to 655.44.

In Kuala Lumpur, Malaysian shares were led lower by the country's drop in economic growth. The Composite Index of 100 blue chips lost 2.57 points, or 0.3 percent, closing at 914.62.

In Manila, Philippine shares declined on selling in blue chips. The 30-company Philippine Stock Exchange Index closed 14.49 points, or 0.8 percent lower, at 1,816.47.

In Seoul, South Korean shares were dragged lower by foreign selling on the South Korean won's strength against the dollar, which makes the country's exports pricier. The Korea Composite Stock Price Index, or Kospi, dropped 1.26 points, or 0.1 percent, to 876.80.

In Singapore, prices rose amid buying of conglomerate Keppel Corp. The Straits Times Index added 11.18 points, or 0.6 percent, finishing at 2,038.84.