Shares end up on buying in Inco, Aneka Tambang
Shares end up on buying in Inco, Aneka Tambang
Agencies, Jakarta
Indonesian shares ended higher on Thursday, led by gains in export-driven companies like International Nickel Indonesia and Aneka Tambang, on expectations of higher first-quarter earnings due to the weak rupiah against the U.S. dollar, dealers said.
They said the market shrugged off news that Bank Indonesia on Wednesday raised its key interest rate to 7.53 percent from 7.44 percent, aimed at fighting rising inflation and defending the rupiah.
"News (of the rate increase) had already been factored in," said a trader with Kuo Capital Securities.
The Jakarta Stock Exchange Composite Index ended up 8.333 points, or 0.8 percent, at 1111.621.
Gainers led decliners 86 to 54, with 76 stocks unchanged.
Volume was 1.8 billion shares valued at Rp 1.8 trillion (US$189.67 million), compared with 1.1 billion shares valued at Rp 1.0 trillion on Wednesday.
Dealers said investors bought mining companies whose revenue are denominated in dollars. Tin miner International Nickel Indonesia, or Inco, jumped 3.5 percent to Rp 14,950.
Gold and nickel miner Aneka Tambang rose 4.4 percent to Rp 2,400 and oil producer Petrosea added 4 percent to Rp 5,200.
Bellwether Telekomunikasi Indonesia gained 1.1 percent to Rp 4,675 on a rebound and cement maker Semen Gresik rose 1.6 percent to Rp 16,100 on bargain hunting.
Profit-taking hit cigarette maker Gudang Garam, which dropped 0.9 percent to Rp 16,250 and Indonesian Satellite, which lost 1 percent to Rp 5,200.
Meanwhile, United Tractors, a heavy equipment distributor, rose Rp 175, or 6 percent, to 3,075, the highest since March 23.
"United Tractors sold 771 units of heavy equipment in the first quarter, the highest quarterly sales" figure since the Asian financial crisis, Danareksa analyst Erwan Teguh wrote in a note to clients.
He raised the stock to "buy" from "hold" and increased this year's sales estimate to 2,450 units from 2,000 units.
Dealers expect the market to trade higher on Friday on follow- through buying in companies that earn revenue in U.S. dollars.
Meanwhile, the rupiah ended slightly lower on Thursday as local importers continued to buy U.S. dollars to finance their imports, dealers said.
The dollar closed at Rp 9,490, up from Rp 9,480 on Wednesday.
Dealers said investors shrugged off news that the central bank late Wednesday increased its key interest rate by a bigger-than- expected magnitude in an effort to combat rising inflation and defend the rupiah.
"The rate increase was within market expectations, so it didn't much affect sentiment on the rupiah," said a trader with a state-owned bank.
Dealers said the central bank was not seen in the market on Thursday. Bank Indonesia has allegedly sold dollars in the spot market in recent weeks to support the rupiah.
Dealers expect the dollar to trade between Rp 9,490 and Rp 9,520 on Friday.