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.