Rupiah ends up on profit-taking

Rupiah ends up on profit-taking

Dow Jones, Jakarta

The rupiah ended higher on Thursday on suspected intervention
by the central bank, Bank Indonesia, and continued profit-taking
against the dollar's recent rise, dealers said.

The dollar closed at Rp 9,485, down from its close on
Wednesday at Rp 9,525.

State banks, suspected to be acting on behalf of the central
bank, sold the dollar when trading opened, dealers said.

"The suspected Bank Indonesia's dollar unloading triggered
further profit-taking against the dollar, which was also prompted
by the dollar's correction against most other Asian currencies,"
a dealer with a local bank said.

Month-end dollar demand from local companies slowed the
dollar's slide, dealers said. Local companies usually step up
their dollar purchases during month-ends to pay for maturing
offshore debt or to finance imports.

Dealers said that the greenback may test lower levels on
Friday, but much also depends on the dollar's movement against
other major currencies.

They expect the unit to trade between Rp 9,450 and Rp 9,500.

Meanwhile, Jakarta shares ended higher on a rebound after
falls in the previous five sessions, with gains across Asian
markets providing support, dealers said.

"The market recovered slightly from its recent sharp losses,"
said a trader with a foreign securities firm. He added that
bargain hunters bought back shares in plantation and
infrastructure-related companies on expectations of improved 2005
performance.

Dealers said lingering worries that the central bank will soon
raise interest rates to defend the rupiah and combat rising
inflation prevented investors from taking up strong buying
positions.

The Jakarta Stock Exchange Composite Index ended up 15.04
points, or 1.4 percent, at 1080.17.

Gainers led decliners 106 to 40, with 63 stocks unchanged.

Volume was 2.3 billion shares valued at Rp 2.1 trillion,
compared with 2.86 billion shares valued at Rp 2.7 trillion on
Wednesday.

Heavy equipment company United Tractors jumped 11 percent to
Rp 2,875 on a rebound after falling 22 percent in the previous
five sessions.

Dealers also attributed gains in Tractors to expectations that
its performance will improve this year due to rising heavy
equipment demand for reconstruction projects in earthquake
devastated areas in Indonesia.

Crude palm oil producer Astra Agro Lestari rose 8.1 percent to
Rp 4,000 on expectations of solid first-quarter earnings due to
higher commodity prices.

Also higher on a rebound were shares in bellwether
Telekomunikasi Indonesia (Telkom), which gained 0.6 percent to
Rp 4,475 and rival Indonesian Satellite (Indosat), which added
2.6 percent to Rp 4,875.

Dealers expect the market to trade higher on Friday on further
bargain hunting.