Shares end higher, with Telkom still rebounding

Shares end higher, with Telkom still rebounding

Dow Jones, Jakarta

Indonesian shares ended higher on Wednesday led by bellwether PT
Telekomunikasi Indonesia (Telkom)'s continued rebound on renewed
expectations that the company will book higher 2005 earnings,
dealers said.

Gains on most Asian markets and the firmer rupiah against the
dollar also brought impetus to the local bourse.

Dealers said that the central bank's move to raise its key
interest rate to cope with rising inflation didn't affect
sentiment that much.

The central bank on Tuesday raised its Bank Indonesia rate to
8.75 percent from 8.50 percent to cope with rising inflation.

"The market maintained its upward trend despite concerns over
high oil prices and local interest rates," said a trader with
Andalan Artha Advisindo. She said most of the buyers were midterm
investors who bought shares mostly on expectations of the
improved fundamental outlook of many companies for this year.

The Jakarta Stock Exchange's Composite Index rose 1.2 percent,
or 14.039 points, to 1176.838.

Gainers led decliners 71 to 49, with 81 stocks unchanged.
Volume rose to 1.8 billion shares valued at Rp 1.50 trillion,
compared with 1.25 billion shares valued at Rp 1.1 trillion on
Tuesday.

Telkom gained 4.6 percent to Rp 5,650, on hopes that the
company will book higher net profit due to an increase in revenue
from its cellular and fixed-line services.

Telkom's rival, Indonesian Satellite Corp. (Indosat), gained
1.7 percent to Rp 5,850.

Dealers said bargain-hunters bought back shares in automotive
company Astra International, gaining 1.3 percent to Rp 11,850,
after recent sharp falls.

Coal miner Tambang Batubara Bukit Asam maintained its bullish
trend, gaining 3.4 percent to Rp 1,840 on solid fundamentals due
to the commodity's higher prices.

Elsewhere, Bank Central Asia ended up 1.4 percent to Rp 3,600
ahead of the government's plan to sell its 5 percent stake in the
bank next month.

Dealers said they expect shares to trade flat to slightly
higher on Thursday, with swift profit-taking likely to offset the
main index's gains.

Elsewhere, the rupiah closed slightly higher on Wednesday as
state banks actively sold the U.S. unit, dealers said.

The dollar closed at Rp 9,770, compared with Rp 9,795 on
Tuesday.

The greenback opened higher at Rp 9,800 as market participants
speculated that rising oil prices would boost demand for dollars
to finance Indonesia's imports of petroleum products.

But state banks then moved in to defend the rupiah and sold
dollars, likely on orders by the central bank, the dealers said.

"I think the pressure on the rupiah has not completely gone as
oil prices are still high," a dealer with a local bank said.

Indonesia, the sole South East Asian member of the
Organization Of Petroleum Exporting Countries, is a net oil
importer as fuel consumption is rising, while its crude oil
output has been declining.

The central bank said on Tuesday that high oil prices and
rising imports of raw materials have put pressure on the rupiah,
while inflows of foreign direct investment remain slow.

Dealers expect the dollar to trade between Rp 9,750 and Rp
9,800 on Thursday.