Shares end higher on Bank Mandiri divestment plan
Shares end higher on Bank Mandiri divestment plan
Dow Jones, Jakarta
Indonesian shares ended higher on Friday, led by gains in Bank Mandiri on the government's plan to sell a stake in the bank.
Underlying sentiment remained positive due to an upbeat economic outlook this year, dealers said.
The Jakarta Stock Exchange Composite Index ended 9.578 points, or 1.23 percent, higher at 785.879, a new closing record.
Gainers led decliners 80 to 44, with 93 stocks unchanged.
Volume was 1.7 billion shares valued at Rp 558 billion (US$66.42 million).
Bank Mandiri, the country's largest bank, jumped Rp 100, or 7.6 percent, to Rp 1,425 on hopes the government will sell an additional stake in the bank at a premium. The sale is due in the first half of this year.
Dealers also attributed the buying in Bank Mandiri to an improved business outlook due to a recent fall in interest rates.
Bellwether Telekomunikasi Indonesia, or Telkom, rose Rp 100, or 1.3 percent, to Rp 7,950 on hopes it will complete the reaudit of its 2002 accounts next week.
Indonesia Satellite Corp., Telkom's rival, fell Rp 100, or 0.6 percent, to Rp 16,700 on profit-taking.
Also higher were shares in car maker Astra International, which rose Rp 50, or 0.9 percent, to Rp 5,600 on bargain-hunting.
Dealers said they expect the market to trade flat to slightly higher on Monday on further buying in blue chips.
Separately, rupiah closed almost unchanged against the dollar on Friday with most market participants still away for the Lunar New Year holiday.
But dollar demand from local companies paying maturing offshore debts kept the U.S. currency well bid, dealers said.
However, foreign banks in Jakarta sold the U.S. currency given its weakness against the yen and euro.
The dollar closed at Rp 8,408, virtually unchanged from its close Wednesday at Rp 8,405. The Jakarta foreign exchange market was closed on Thursday for the Chinese New Year celebrations.
Dealers expect local companies to continue accumulating dollars until the end of the month. But the bearishness of the dollar against major rivals is likely to put a lid on the U.S. unit's gains versus the Indonesian currency.
Dealers expect the dollar to trade between Rp 8,390 and Rp 8,415 on Monday.