Shares end at record high on WB forecast

Shares end at record high on WB forecast

Indonesian shares ended at a new record high on Wednesday after the World Bank raised its forecast for Indonesia's gross domestic product growth, dealers said.

In its report on East Asia and the Pacific Region released Tuesday, the World Bank said it expects Indonesia's GDP to grow 4.9 percent this year, from 4.5 percent previously, and it expects 5.4 percent GDP growth in 2005, from 5.0 percent previously.

Analysts said the report from the World Bank has boosted expectations that Indonesian companies' performance will also improve next year.

The Jakarta Stock Exchange Composite ended up 17.333 points, or 1.9 percent, to hit an all-time closing high of 918.713. Gainers led decliners 106 to 27, while 75 stocks were unchanged. Volume was 1.8 billion shares worth Rp 1.4 trillion.

Bellwether Telekomunikasi Indonesia led gainers on expectations of higher full-year earnings, due to more contributions from its cellular and fixed-line services. Telkom gained 1.6 percent to Rp 4,750.

Telkom's rival Indonesian Satellite ended up 0.9 percent at Rp 5,400, on bargain hunting.

Dealers said investors continued to buy shares in tobacco companies on expectations of the firms' improved performance next year because of stronger consumer purchasing power.

Cigarette maker Gudang Garam ended up 1.2 percent at Rp 12,900 and rival Hanjaya Mandala Sampoerna gained 1.6 percent to Rp 6,550.

Also higher were shares in Bank Mandiri, which rose 3 percent to Rp 1,700 on expectations of higher nine-month earnings. The bank is expected to announce its earnings results later this month.

Dealers said they expect the market to trade higher on Thursday on further buying in blue chips.

Meanwhile, the rupiah ended lower as market participants continued to cover short dollar positions, dealers said.

The dollar closed at Rp 9,050, up from its close Tuesday at 9,015.

Dealers have been covering their dollar shorts to take profits since Tuesday following the U.S. unit's fall to a 16-week low Monday.

Dollar bids were also likely fueled by the greenback's rise against the yen ahead of the U.S. Federal Reserve's meeting. -- Dow Jones