Shares end higher on gains in Telkom, Bank Lippo
Shares end higher on gains in Telkom, Bank Lippo
Dow Jones, Jakarta
Indonesian shares ended marginally higher on Monday, with
gains in bellwether Telekomunikasi and Indonesia Bank Lippo
driving the main index to break above the key level of 1,100
points.
The Jakarta Stock Exchange Composite index ended up 0.4
percent, or 3.946 points, at 1100.878 points.
The index last touched 1,100 points on April 15, before
falling due to worries over rising interest rates.
Gainers led decliners 60 to 40, with 64 stocks unchanged.
Volume was 645 million shares valued at Rp 714 billion,
compared with 1 billion shares valued at Rp 968 billion on
Friday.
Telkom gained 1.6 percent to close at Rp 4,825 on expectations
the company will pay a higher 2004 dividend and after its
American depositary receipts in New York rose 2.5 percent to
US$19.95. Telkom's rival Indonesian Satellite ended up 1.9
percent at Rp 5,400 on expectations of improved first-half
earnings.
Bank Lippo rose 3.9 percent to Rp 1,060 on news Khazanah
Nasional Bhd., Malaysia's state-owned investment arm, has emerged
as a main contender to acquire a controlling stake in the bank.
However, dealers said overall sentiment remained cautious over
renewed concerns that the rupiah will fall further on rising
dollar demand from importers to finance imports ahead of the end
of the month.
The dollar was trading higher at Rp 9,610, compared with its
previous close at Rp 9,589 Friday on broad bullish sentiment over
the dollar.
Oil and gas producer Medco Energi fell 6.3 percent to Rp 3,750
on profit taking after 17 percent gains on Friday ahead of its
plan to sell a 40 percent stake through a secondary offering on
the Luxembourg bourse in the second half of the year.
Dealers said they expect the market to continue its rise on
Tuesday led by further gains in Telkom.
The Indonesian rupiah closed lower on Monday on broad bullish
sentiment toward the dollar globally, but suspected Bank
Indonesia intervention helped the local unit recoup some of its
losses, dealers said.
The dollar closed at Rp 9,610, up from its close on Friday at
Rp 9,590.
The greenback jumped to an intraday high of Rp 9,645 early in
the day as market participants looked to the dollar's rise versus
other major rivals for direction in the local foreign-exchange
market amid a lack of fresh domestic factors.
Later in the day, the central bank was suspected of supplying
dollars to the market to aid the rupiah. This in turn triggered
profit-taking against the dollar, dealers said.
"The market has been caught long on dollars, and Bank
Indonesia's intervention served as a catalyst for profit-taking,"
a dealer with a European bank said.
Dealers expect the dollar could continue to trade above
Rp 9,600 on Tuesday, but that Bank Indonesia will likely remain
vigilant in defending the rupiah.
"I think Rp 9,645-50 will be a good resistance level for the
dollar tomorrow," another dealer said.