Shares end flat; index at fresh record high

Shares end flat; index at fresh record high

Dow Jones/Jakarta

Indonesian shares ended flat on Wednesday, with gains in heavy-equipment firms and most small-capitalized shares managing to keep the main index in positive territory, dealers said.

"The main index managed to close at a fresh record high despite profit-taking in bank and telecom blue chips," said a trader with Kuo Capital Securities.

He said gains in most Asian markets brought impetus to the local bourse, but lingering concerns over the volatility of the rupiah and bird-flu cases in the capital discouraged investors from taking up strong buy positions.

The Jakarta Stock Exchange's Composite Index ended up 0.01 percent at 1178.112.

Gainers led decliners 80 to 50, with 69 stocks unchanged.

Volume rose to 2.2 billion shares valued at Rp 1.7 trillion, compared with 1.5 billion shares valued at Rp 1.25 trillion on Tuesday.

Heavy-equipment maker United tractors gained 1.7 percent to Rp 4,525 on expectations of solid first-half earnings. Rival Komatsu Indonesia rose 2.9 percent to Rp 5,300.

Analysts attributed the gains in these companies to promising developments in the country's infrastructure and mining sectors.

Dealers said investors bought most second-line shares on expectations of improved 2005 performance.

Technology company Astra Graphia jumped 24 percent to Rp 390, while forestry company Barito Pacific gained 11 percent to Rp 740.

Profit-taking hit shares of Telekomunikasi Indonesia, which dropped 1.8 percent to Rp 5,600. Bank Danamon lost 1.8 percent to Rp 5,400. These shares had a sharp run-up earlier this week.

Dealers expect shares to trade slightly lower Thursday on further profit-taking in select blue chips.

The Indonesian rupiah ended lower Wednesday as local companies bought dollars to pay maturing offshore obligations due at the end of the month, dealers said.

The dollar closed at Rp 9,835 versus Rp 9,810 on Tuesday. The greenback hit an intraday high of Rp 9,840 .

"I think it will be difficult for the rupiah to strengthen until the end of the month as local companies are still buying dollars," a dealer with a local bank said.

Local companies need dollars to either repay maturing debts or settle import bills.

Dealers said Bank Indonesia, the central bank, probably sold dollars Wednesday to support the local currency.

They expect the dollar to test Rp 9,850 on Thursday, with downside support at Rp 9,820.

Elsewhere in the money market, Bank Indonesia absorbed Rp 38 trillion in funds via a weekly auction of its one-month Sertifikat Bank Indonesia notes. The weighted average rate of the notes was unchanged at 8.49 percent for the third consecutive auction. The rate was slightly below Bank Indonesia's targeted rate of 8.50 percent.