Shares end at record high on economic hopes
Shares end at record high on economic hopes
Dow Jones, Jakarta
The Indonesian stock market ended at a record high on Thursday on
expectations that a meeting of international lenders, the
Consultative Group on Indonesia, would produce positive results
later that day, dealers said.
The lenders, which consist of donor countries, non-government
organizations and international financial institutions, pledged
on Thursday a total of US$3.4 billion, including $2.8 billion in
loans this year to support the government's budget.
"There were expectations that any positive results from the
meeting will help the nation's economy," said an analyst with a
foreign securities firm.
The Jakarta Stock Exchange Composite Index ended up 7.937
points, or 0.8 percent, to hit an all-time high of 1035.75
points.
Gainers led decliners 79 to 42, with 79 stocks unchanged.
Volume was 2.55 billion shares valued at Rp 2 trillion,
compared with 9.57 billion shares valued at Rp 2.47 trillion on
Wednesday.
Indonesian Satellite (Indosat) led gainers, up 2.5 percent at
Rp 6,150 on expectations of higher 2004 earnings and after its
American Depositary Receipts rose 3.4 percent to $32.85. Indosat
is expected to announce its 2004 earnings early next month.
Bank Mandiri, the nation's largest lender by assets, gained
1.6 percent to Rp 1,910 on a rebound.
Dealers said investors continued to buy infrastructure-related
stocks on expectations that the companies will benefit from the
government's infrastructure development plans, dealers said.
The government has said it targets infrastructure investments
worth $150 billion over the next five years. The plans include
projects that involve private domestic and foreign investors'
partnerships with state-owned firms valued at up to Rp 306
trillion.
Cement maker Semen Gresik climbed 2.2 percent to Rp 18,700 and
rival Indocement Tunggal Prakarsa was 0.8 percent higher at Rp
3,275 on hopes of higher demand for cement due to the expected
infrastructure projects.
Dealers said they expect the market to trade higher on Monday,
led by follow-through buying in Indosat.
The Indonesian stock market closed on Friday for a public
holiday.
Meanwhile, the rupiah finished steady in range-bound trading
on Thursday as capital inflows into the country's stock market
offset dollar demand from local companies, dealers said.
The dollar closed at Rp 9,160, unchanged from its close
Wednesday. It traded between Rp 9,150 and Rp 9,170 during the
day.
Dealers said that local companies bought the U.S. unit to pay
for maturing offshore obligations. On the other hand, foreign
investors sold the greenback to invest in the Indonesian equity
market, they said.
"The rupiah was shielded from the dollar-yen rise thanks to
capital inflows into the stock market," a dealer said.
Dealers expect the dollar to trade between Rp 9,130 and Rp
9,180 on Monday.