Shares end higher as blue chips rebound
Shares end higher as blue chips rebound
Dow Jones, Jakarta
Indonesian shares ended marginally higher Tuesday, with a late rebound in select blue chips and most smallcap stocks reversing earlier losses, dealers said.
They said gains in several Asian markets spurred bargain hunters, mostly foreigners, to buy Indonesian stocks.
After staying in negative territory for most of the session, the Jakarta Stock Exchange Composite ended up 1.9 points, or 0.2 percent, to hit a fresh four-month high at 786.687.
Gainers led decliners 78 to 30, with 81 stocks unchanged. Volume was 1.3 billion shares valued at Rp 670 billion rupiah.
Cement maker Indocement Tunggal Prakarsa led gainers, closing up Rp 75, or 4.5 percent, at Rp 1,750 on expectations of higher cement sales this year.
Food maker Indofood Sukses Makmur rose Rp 25, or 3.6 percent, to Rp 725 on bargain hunting.
Also higher were shares in Bank Mandiri, up Rp 25, or 1.8 percent, to Rp 1,400 on the bank's plan to acquire stakes in other regional banks.
Bellwether Telekomunikasi Indonesia and Indonesian Satellite Corp. still succumbed to profit-taking. Telkom ended down Rp 50, or 0.6 percent, to Rp 8,150, while Indosat fell Rp 50, or 1.2 percent, to Rp 4,200.
Dealers expect the market to trade mixed to slightly higher Wednesday on a further rebound.
Meanwhile, the rupiah ended steady Tuesday, with investors focused on the country's security situation ahead of the Sept. 20 presidential election.
The dollar closed at Rp 9,285, unchanged from its Monday's close. It moved between 9,280 and 9,290 for most of the session.
"It's another dull and quiet trade," said a trader with a local bank.
Most investors were reluctant to take positions with sentiment cautious ahead of the second round of the presidential polls, he said.
In the runoff, incumbent Megawati Soekarnoputri will challenge first-round front-runner Susilo Bambang Yudhoyono, a former security minister.
Many analysts expect the rupiah to regain ground if the runoff proceeds peacefully and the political picture is clearer.
The dollar is expected to trade between 9,280 and 9,290 again Wednesday.