Shares end higher on gains in Telkom, Semen Gresik
Shares end higher on gains in Telkom, Semen Gresik
Dow Jones, Jakarta
The Jakarta stock index ended higher on Tuesday as a late rebound in Telekomunikasi Indonesia (Telkom) and further gains in cement maker Semen Gresik kept the main index in positive territory, dealers said.
"The market continued to recover from heavy profit-taking last week," said an analyst with a local securities firm. He expects the main index to breach the 1,000-point level later this month, if buying continues.
The Jakarta Stock Exchange Composite Index closed up 3.212 points, or 0.3 percent, at 986.410, up from an intraday low of 975.285.
Gainers led decliners 81 to 44, with 90 stocks unchanged.
Volume was 1.35 billion shares valued at Rp 1.1 trillion, compared with 1.7 billion shares valued at Rp 959 billion the day before.
Bellwether Telkom ended up 2 percent at Rp 5,100 on a rebound and after the company said it plans to invest Rp 14 trillion next year to expand its business.
Telkom's rival Indosat gained 0.9 percent to Rp 5,650 on bargain hunting.
Semen Gresik, the nation's largest cement maker, jumped 7.5 percent on renewed expectations that the government will sell its 51 percent stake in the company to Mexico's Cemex in an effort to resolve a long-running dispute over which party controls Gresik, dealers said.
Profit-taking, however, hit shares in Bank Danamon, which closed down 1.1 percent at Rp 4,400, and cigarette maker Gudang Garam, which fell 0.4 percent to Rp 13,400.
Dealers said they expect the market on Wednesday to trade slightly higher on further buying in Semen Gresik.
Meanwhile, in the currency market, the rupiah weakened due to rising demand for the dollar from participants who need the U.S. currency to make offshore debt payments, according to dealers.
The local currency ended at 9,090 per dollar, as against the previous closing of 9,065.
Dealers said local companies continued to buy the U.S. currency to repay offshore borrowings that will mature at the end of the year.
"Cyclically, demand for the dollar is always healthy toward year-end due to offshore debt payment, and profit repatriation by the units of foreign companies here," a dealer said.
The dollar was also bolstered by short-covering as market participants are reducing their positions before they go on Christmas and New Year holidays.
Dealers predict the rupiah will trade between 9,060 and 9,110 a dollar on Wednesday.
"Despite the lingering dollar global weakness, I don't think the dollar will slide against the rupiah toward the end of the year," another dealer said.