Shares end up led by gains in Semen Gresik, Mandiri

Shares end up led by gains in Semen Gresik, Mandiri

Dow Jones, Jakarta

Indonesian shares ended higher on Monday led by gains in
cement maker Semen Gresik, which is expected to build a new plant
as part of a sales drive, and a rebound in Bank Mandiri, dealers
said. Firmer Asian markets also provided support.

"Foreign investors continued to buy select blue chips that
have solid fundamentals," said a trader with a foreign securities
firm. He added, however, that profit taking by local funds
because of concerns over the weaker rupiah capped buying.

The Jakarta Stock Exchange Composite Index ended up 4.331
points, or 0.4 percent, at 1096.833.

Gainers led decliners 59 to 50, with 72 stocks unchanged.
Volume was 1.6 billion shares valued at Rp 1.2 trillion, compared
with 1.55 billion shares valued at Rp 1.6 trillion on Friday.

Gresik jumped 5.6 percent to Rp 16,950 on expectations that it
will build a new cement plant in East Java in an effort to
increase sales over the long term. Gresik's rival Semen Cibinong
gained 4.1 percent to Rp 510. Dealers also attributed buying in
cement shares to expectations of an increase in cement demand
from local developers.

Bank Mandiri, the nation's largest lender by assets, gained
1.4 percent to Rp 1,500 on a rebound after falling in the
previous four sessions on concerns over its poor first quarter
performance.

Carmaker Astra International was also ahead, rising 2 percent
to Rp 12,700 on its plan to pay a Rp 270 a share dividend June
21.

Indonesian Satellite rose 2.9 percent to Rp 5,350 on
expectations of improved first half earnings.

Elsewhere, Bank Central Asia fell 1.4 percent to Rp 3,525 and
consumer goods producer Unilever Indonesia dropped 0.6 percent to
Rp 4,100. Dealers said both fell on profit taking after gains
last week.

Dealers said they expect the market to trade slightly higher
Tuesday on a further rebound in Bank Mandiri, with profit taking
by local funds likely to cap gains on the main index.

The Indonesian rupiah lost further ground on Monday on
lingering concerns about possible terrorist attacks and abundant
rupiah liquidity, dealers said.

The U.S. government warned on Friday of possible terrorist
attacks on Jakarta hotels targeting Westerners, the latest in a
flurry of security advisories underlining the threat of terrorism
in the world's most populous Muslim country. Indonesia has
suffered three major attacks by al-Qaida-linked militants since
2002.

The dollar closed at Rp 9,590, up a tad from its close on
Friday at Rp 9,585. It rose to an intraday high of Rp 9,598, but
suspected intervention by Bank Indonesia pulled the unit down. on
Friday, the rupiah had slipped 0.2 percent.

Dealers said that dollar demand probably came from former
public shareholders of HM Sampoerna who recently sold their stake
in the company to Philip Morris. The U.S. tobacco company likely
paid for its purchase of another 58 percent stake in the local
cigarette company on Friday, dealers said.

Dealers expect the dollar to trade between Rp 9,570 and Rp
9,600 on Tuesday.