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.