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.