Shares end at record high on rise in energy, bank chips
Shares end at record high on rise in energy, bank chips
Dow Jones, Jakarta
Indonesian shares ended slightly higher on Wednesday as gains in gas and oil producer Medco Energi and bank blue chips drove the main index to a fresh record high, dealers said.
The Jakarta Stock Exchange's Composite Index added 0.2 percent, or 2.876 points, to 1192.203.
News that Indonesia's economy expanded by 6.3 percent in the first half of this year, higher than the government's target of 6 percent for the rest of 2005, improved overall sentiment, but sporadic profit-taking by local funds prevented the main index from testing the important level of 1,200, dealers said.
"The gains of main index looked limited, which could reflect that price correction may continue tomorrow," said an analyst with Kuo Capital Securities.
Gainers beat decliners 68 to 50, with 79 stocks unchanged. Volume rose to 1.5 billion shares valued at Rp 1.4 trillion, compared with 1.35 billion shares valued at Rp 1.12 trillion on Tuesday.
Leading gainers, gas and oil producer Medco Energi jumped 8.1 percent to Rp 3,350 on a rebound after falling 19 percent earlier this week following the company's announcement that it will sell 899 million shares on the Luxembourg bourse at a discount.
Dealers also attributed Medco's advance to news that its first-half net profit rose 79 percent on year due to an increase in oil prices.
Gas producer Gas Negara rose 3.8 percent to Rp 3,450 on expectations that the government will sell a stake in the company at premium later this year.
Investors also bought shares of select banks on expectations that the government will proceed with its plan to sell part of its stakes in the banks later this year at premium, dealers said. The government is expected to use the proceeds to cover the 2005 budget deficit.
Bank Mandiri, the nation's largest lender by assets, gained 1.2 percent to Rp 1,650 and Bank Central Asia added 1.3 percent to Rp 3,775.
On the down side, Astra International, the nation's largest automotive company, fell on renewed worries that high interest rates could hurt its sales this year by preventing people from buying cars with bank loans. Astra lost 2.7 percent to Rp 12,850.
The central bank on Wednesday raised its benchmark one-month note interest rate to 8.5 percent from 8.49 percent previously.
Dealers said they expect Indonesian shares to trade lower on Thursday on profit-taking.
The Indonesian rupiah closed lower on Wednesday on dollar demand from local importers, dealers said.
The dollar closed at Rp 9,765 compared with its close on Tuesday at Rp 9,745.
The dollar was steady during much of the day's trading, but rose in late afternoon as importers entered the market, dealers said.
Dealers suspected that state-owned oil and gas company Pertamina, in charge of importing petroleum products for the country, was the main dollar-buyer. Officials at Pertamina couldn't be contacted to confirm dealers' comments.
Pertamina officials have said earlier that the company buys its dollars directly from the central bank to fund imports, but many dealers believe the company still buys the U.S. currency in the market via state banks.
Earlier Wednesday, Economics Minister Aburizal Bakrie told reporters that the government has sought a US$1.5-billion loan from China to finance Pertamina's imports. The loan will help ease the pressure on the rupiah, Bakrie said.
Dealers said that the dollar may slide toward Rp 9,750 on Thursday on expected capital inflows linked to the government's 10.5 percent stake sale in Bank Danamon, which is expected to fetch around $270 million.