Shares at JSX end on new high

Shares at JSX end on new high

Dow Jones, Jakarta

Indonesian shares ended at a record high on Wednesday as investors continued to snap up shares of companies, like Bank Mandiri and Astra International, that are expected to report higher 2004 earnings, dealers said.

They said buying was also boosted by news that Indonesia's economy last year grew slightly better than expected. The country's economy grew 5.13 percent in 2004 from a year earlier due to improved growth in investment and exports, the Central Statistics Agency (BPS) said on Wednesday.

The growth rate beat both government and analysts' predictions. The government had projected the economy would grow 4.8 percent in 2004, while the average of estimates from six economists polled by Dow Jones put Indonesia's economic growth at 4.9 percent for 2004.

The Jakarta Stock Exchange Composite Index ended up 6.245 points, or 0.6 percent, to hit a fresh record high of 1073.45.

Gainers led decliners 77 to 53, with 77 stocks unchanged.

Volume was 2.25 billion shares valued at Rp 1.9 trillion (US$205.4 million), compared with 2.2 billion shares valued at Rp 1.78 billion on Tuesday.

Nickel miner International Nickel Indonesia led gainers after it reported its 2004 net profit more than doubled due to an increase in sales. Inco gained 4.6 percent to Rp 12,450.

Also higher were shares of Bank Mandiri, which rose 1.1 percent to Rp 1,840, and carmaker Astra International, which jumped 2.9 percent to Rp 10,700.

Bank Mandiri and Astra are expected to announce their 2004 earnings late this month or in early March.

Profit-taking, however, hit shares of cigarette maker Hanjaya Mandala Sampoerna, which fell 2.5 percent to Rp 7,950, and oil producer Medco Energi, which dropped 1.9 percent to Rp 2,550.

Dealers said they expect the market to trade slightly lower Thursday on profit-taking after sharp gains in the previous three sessions.

Meanwhile, the rupiah ended lower, despite news that the economy last year grew faster than expected.

Local companies continued to buy the dollar on expectations that U.S. Federal Reserve Chairman Alan Greenspan, who will start to deliver semiannual testimony to Congress later on Wednesday, will make positive comments about the U.S. economy, traders said.

The dollar closed at Rp 9,290, up from Tuesday's close at Rp 9,275.

"The news of the nation's economic growth came at a time when the dollar regained its ground, so it didn't help the rupiah much," said a trader with a local bank.

Dealers expect the dollar to trade between Rp 9,260 and Rp 9,320 on Thursday.