Shares close up; Telkom leads on stock split plan
Shares close up; Telkom leads on stock split plan
Dow Jones, Jakarta
Shares ended higher on Thursday led by further buying in Telekomunikasi Indonesia on its 2-for-1 stock split plan designed to boost its trading liquidity, dealers said.
They also said that renewed expectations that the forthcoming presidential election on Sept. 20 will proceed peacefully also spurred foreign investors to buy back Indonesian stocks.
"Buying, however, wasn't that strong," said a trader with a local securities firm, adding that many local retail investors swiftly took profits to avoid risk on the political front.
The Jakarta Stock Exchange Composite ended up 5.175 points, or 0.7 percent, at 780.271, the highest closing level since April 30. Gainers led decliners 69 to 45, with 76 stocks unchanged. Volume was 1.45 billion shares valued at Rp 1.03 trillion.
Bellwether Telekomunikasi Indonesia rose Rp 150, or 1.9 percent, to Rp 8,100, also boosted by expectations of higher revenue from cellular services.
Cigarette maker Gudang Garam rebounded from an intraday low of Rp 13,050 to end the day 1.1 percent higher, or Rp 150, at Rp 13,350.
Bank Mandiri rose Rp 25, or 1.9 percent, to Rp 1,325 on the company's plan to buy stakes in other regional banks to strengthen its performance.
Car maker Astra International and cement maker Semen Gresik, however, succumbed to profit-taking.
Astra fell Rp 150, or 2.2 percent, to Rp 6,650, and Gresik dropped Rp 250, or 2.5 percent, to Rp 9,850.
Dealers said they expect the market to trade higher Friday on further buying in select blue chips.
The rupiah closed higher Thursday, tracking major regional currencies' gains against the dollar.
The dollar ended at Rp 9,280, down from its close of 9,330 Wednesday. The greenback hit an intraday high of 9,335.
Dealers also attributed the increase in the rupiah to profit- taking after the U.S. unit rose early this week and to the fact that dollar demand from local companies has abated.
They said the dollar's slide Thursday, however, should provide an opportunity for local companies with offshore debt maturing in the near future to start accumulating the currency.
"Fresh dollar bids from local companies are likely to emerge around 9,250," said a dealer with a state-owned bank.
Dealers expect the rupiah to continue to rebound Friday, but lingering political uncertainties. The rupiah is unlikely to break a resistance of 9,250, dealers said.