Shares up as blue chips rebound

Shares up as blue chips rebound

Dow Jones, Jakarta

Indonesian shares ended higher on Thursday on a rebound in
many blue chips, helped by gains in most Asian markets, dealers
said.

"It's a mild rebound, however," said a trader with Paramitra
Securities. He added that security concerns ahead of the
presidential runoff in September discouraged investors from
taking strong buying positions.

The Jakarta Stock Exchange Composite ended up 3.538 points, or
0.5 percent, at 735.254. The main index had declined almost 3
percent in the previous three sessions.

Decliners, however, led gainers 47 to 41, with 83 stocks
unchanged.

Volume was 399 million shares valued at Rp 561 billion (US$60
million).

Bank Mandiri ended up Rp 50, or 4.3 percent, at Rp 1,225 after
the nation's largest lender said it is leading a consortium to
buy the government's stake in Bank Permata.

Bank Rakyat Indonesia (BNI) rose Rp 25, or 1.6 percent, to Rp
1,625 after it reported that first-half net profit rose 47
percent on year to Rp 1.72 trillion.

Carmaker Astra International rebounded Rp 300, or 5.2 percent,
to Rp 6,100 after the company said it will launch new
multipurpose vehicle models in September.

Cigarette stocks, however, succumbed to selling pressure on
concerns over rising clove prices. Gudang Garam fell Rp 450, or
3.5 percent, to Rp 12,300 and its rival Hanjaya Mandala Sampoerna
dropped Rp 150, or 2.9 percent, at Rp 5,000.

Dealers said they expect the market to trade higher on Friday
on a further rebound.

Meanwhile, the rupiah closed slightly lower on Thursday, hit
by the dollar's rise against most other Asian currencies,
especially the Thai baht, dealers said.

The dollar closed at Rp 9,290, up from its close of Rp 9,280
on Wednesday.

The dollar touched an intraday high of Rp 9,315 as offshore
market participants sold the local unit after the baht fell to
nearly 42 baht against the U.S. currency early on Thursday, from
its close of 41.51 baht on Wednesday.

"Market participants felt uncomfortable holding the rupiah as
the baht tumbled," a dealer with a foreign bank in Jakarta said.

He said the market still has bitter memories of 1997, when a
crisis in the baht spilled over to the rupiah and led Indonesia
into a prolonged period of economic and political turmoil.

Dealers said dollar demand from local companies also fueled
the rise in the U.S. currency.

Bank Indonesia, however, is suspected to have intervened to
help the rupiah via state banks, dealers added.