Shares end higher as Telkom up 7%

Shares end higher as Telkom up 7%

Indonesian shares ended higher on Wednesday as further buying in
Telekomunikasi Indonesia (Telkom) drove the main index to hit a
fresh 43-month closing high, dealers said.

The recent strength of the rupiah against the dollar following
the Moody's Investors Service upgrade of Indonesia's foreign
currency ratings to B2 has improved sentiment.

The dollar is at Rp 8,383, compared with Rp 8,410 at Tuesday's
close.

Dealers said a fall in key short-term bond yields prompted
investors to shift their money from bank deposits to equities
where they believe profits will be higher.

Indonesia's central bank on Wednesday allowed average yields
on its benchmark one-month Sertifikat Bank Indonesia, or SBI,
notes to fall to an all-time low of 8.59 percent at the regular
weekly auction, from 8.66 percent a week earlier.

The Jakarta Composite Index ended up 1.4 percent, or 8.387
points, at 606.04.

Gainers led decliners 70 to 66, with 85 stocks unchanged.

Volume was 819 million shares traded, worth Rp 567 billion.

Telkom jumped 7 percent, or Rp 400, to Rp 6,100.

Dealers attribute the buying in Telkom to expectations of
higher revenue this year due to greater contributions from its
cellular unit Telkomsel and fixed-line services.

"Gains in Telkom encouraged investors to buy other select blue
chips," said a trader with a local brokerage firm.

Bank Mandiri, the nation's largest bank in terms of assets,
ended up 2.9 percent, or Rp 25, to Rp 875.

Retailer Ramayana Lestari rose 2.5 percent, or Rp 100, to Rp
4,175, and cigarette maker Gudang Garam gained 0.4 percent, or Rp
50, to Rp 11,300. But, Garam's rival Hanjaya Mandala Sampoerna
succumbed to profit-taking, falling 1.1 percent, or Rp 50, to Rp
4,475.

Dealers expect the market to trade higher on Thursday on
further buying in telecommunication blue chips. -- Dow Jones