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