Shares up led by Astra, Indofood

Shares up led by Astra, Indofood

Dow Jones/Jakarta

Indonesian shares ended higher on Friday led by gains in automotive company Astra International and food producer Indofood Sukses Makmur, with gains across Asian markets providing support, dealers said.

"The market ended the week in positive territory and I expect it will continue to maintain its uptrend next week," said a trader with Paramitra Securities.

He added that buying in shares of companies that plan to give higher 2004 dividends ended the market's sluggish performance earlier this week.

The Jakarta Stock Exchange Composite Index ended up 7.134 points, or 0.7 percent, at 1061.495.

Gainers led decliners 87 to 27, with 57 stocks unchanged.

Volume was 1.75 billion shares valued at Rp 1 trillion, compared with 1.2 billion shares valued at Rp 900 billion on Thursday.

Astra gained 3.2 percent to Rp 11,350 on news it will pay a further Rp 270 a share dividend on June 21 and expectations of improved car sales this year.

Shares in food maker Indofood Sukses Makmur rose 5.6 percent to Rp 1,140, in response to its plan to sell a stake of up to 15 percent in its flour mill unit Bogasari Flour Mills through an initial public offering later this year.

Dealers said falls in cigarette maker Gudang Garam and rival Hanjaya Mandala Sampoerna prevented the main index from rising further.

Garam fell 4.6 percent to Rp 13,450 and Sampoerna dropped 1.8 percent on news that the government will raise the minimum ceiling on retail cigarette prices by 15 percent to 20 percent starting July 1 to boost government revenues and encourage nonsmoking, dealers said.

Dealers said they expect the market to trade higher Monday led by further buying in Astra and Indofood.

The Indonesian rupiah closed higher on Friday as some corporate tax payments were due, boosting demand for the local unit, dealers said.

The dollar closed at Rp 9,485, down from Rp 9,495 on Thursday.

Dealers said the tax payments mopped up the rupiah from the system, sending the overnight interbank rate to as high as 20 percent earlier in the day. The rate settled at 10 percent, slightly above 9.9 percent on Thursday.

Dealers also said Philip Morris continued to buy the rupiah to pay for its purchase of a 58 percent stake in local cigarette company HM Sampoerna earlier this month.

The U.S. company likely will settle payment of the shares next week, putting rupiah liquidity back into the system.

Bank Indonesia was also heard selling dollars earlier in the day, when the U.S. unit briefly touched an intraday high of Rp 9,500 due to month-end demand from local importers, dealers said.

"Bank Indonesia stayed alert to prevent the dollar from rising above Rp 9,500," a dealer with a local bank said.

The central bank likely sold a small amount of dollars, while some companies accumulated rupiah later in the day to pay taxes.

Dealers expect the dollar to trade between Rp 9,480 and Rp 9,525 on Monday.