Shares end slightly higher on bargain hunting

Shares end slightly higher on bargain hunting

Dow Jones, Jakarta

Shares closed slightly higher on Thursday on late bargain hunting, after falling in the previous three sessions, dealers said.

Profit taking and news of two small explosions Wednesday in West Java's capital of Bandung had dragged stock prices lower, providing bargain hunters good levels to pick up stocks, dealers said.

The Jakarta Stock Exchange composite index closed up 0.1 percent, or 1.024 points at 745.340. The main index fell to an intraday low of 735.431.

Gainers led decliners 64 to 31, with 72 stocks unchanged. Volume was 1.1 billion shares valued at Rp 421.8 billion.

"We told our clients to buy on dips as stock prices had already been cheap," said a dealer with a foreign securities company.

Still, dealers said most of the bargain hunters are expected to lock in their profits next week due to lingering concerns over political tension ahead of the second presidential runoff elections in September.

"Buy on dips and sell on rallies is the best strategy for the time being," he added.

Heavy weight Telekomunikasi Indonesia (Telkom) rose 0.7 percent, or Rp 50, to Rp 7,450; its rival Indonesian Satellite Corp. (Indosat) gained 0.6 percent, or Rp 25, at Rp 4,125.

Cigarette maker HM Sampoerna closed up 1.9 percent, or Rp 100, at Rp 5,300, and its larger competitor Gudang Garam rose 0.7 percent, or Rp 100, to 14,300.

Automotive company Astra International, however, edged down 0.9 percent, or Rp 50, to Rp 5,550.

Dealers said Thursday's slight gains may inspire other investors to buy local stocks Friday.

Meanwhile, the rupiah ended flat as players remained on the sidelines ahead of second-round presidential elections slated for Sept. 20.

The dollar closed at Rp 8,960, unchanged from its finish Wednesday.

The U.S. unit rose to an intraday high of Rp 9,000 as the market remained a little jittery over two small explosions Wednesday in Bandung, about 150 kilometers southeast of Jakarta.

But the bombs, which did only minor damage and left no casualties, were linked to gambling, and not to the ongoing presidential elections as the market at first worried, police said.

The dollar quickly fell back as mainly local banks cut their positions, traders said. Most want to stay on the sidelines until the elections are over, they said.

Around 150 million Indonesians will cast their votes again Sept. 20 after a first-round election this month failed to produce an outright winner.

Incumbent President Megawati Soekarnoputri is widely expected to face market-favorite Susilo Bambang Yudhoyono in the September poll.