Shares end higher led by Telkom
Shares end higher led by Telkom
Dow Jones, Jakarta
Indonesian shares ended higher on Monday led by foreign program
buying in telecommunications and bank blue chips, with gains in
many Asian markets providing support, dealers said.
They said a steady rupiah against the U.S. dollar also added
to positive sentiment, but profit taking by local retail
investors ahead of the government's plan to hike fuel prices
early next month limited gains on the main index.
"The fuel factor discouraged investors from taking up strong
buying positions," said a trader with a local securities firm.
The Jakarta Stock Exchange Composite index ended up 0.9
percent, or 9.865 points, at 1066.591.
Gainers lead decliners 53 to 48, with 72 stocks unchanged.
Volume was 550 million shares valued at Rp 941 billion,
compared with 955 million shares valued at Rp 845 billion on
Friday.
The dollar was trading flat at Rp 9,155 as fresh capital
inflows into the local capital market helped offset the impact of
the dollar's strength against other Asian currencies.
Bellwether Telekomunikasi Indonesia rose 2.9 percent to Rp
5,300 on further bargain hunting after falling 12 percent last
week, and on expectations of solid nine-month earnings.
Telkom's rival, Indonesian Satellite (Indosat), gained 3.9
percent to end at Rp 5,300.
Bank Mandiri, the nation's largest lender by assets, advanced
2.9 percent to Rp 1,410 and Bank Rakyat Indonesia ended up 1
percent at Rp 2,625 on renewed expectations the government will
proceed with its plan to sell part of its stake in the banks
later this year at premium.
Profit taking hit nickel miner International Nickel Indonesia,
or Inco, which fell 2 percent to Rp 14,950 and coal miner Bumi
Resources, which ended down 1.2 percent at Rp 840.
Shares in mining companies rose last week on expectations of
solid 2005 earnings as they earn revenue mostly in U.S. dollars.
Dealers said they expect shares to trade higher on Tuesday on
followthrough buying in telecommunications blue chips.