Stock prices up 2.5% on renewed market optimism

JAKARTA (Agencies): Stock prices on the Jakarta Stock Exchange (JSX) rebounded yesterday, gaining 2.5 percent on renewed market optimism that the International Monetary Fund (IMF) would soon release its second US$3 billion tranche in financial aid, stockbrokers said.

They said investors made significant buying orders for certain big capitalized stocks.

"Investors are relieved because of the possible disbursement of the second tranche loan because it will improve the country's ailing economy," a broker with BZW Niaga Securities said.

Another broker with Trimegah Securities said the disbursement would help investors plan how to use their funds.

The JSX Composite Index rose 16.14 points to close at 516.73 points yesterday from 504.14 points the previous day with a total turnover of 678.85 million shares worth Rp 635.33 billion ($67.58 million) on the regular market.

The brokers said most investors were making large buying transactions on blue chip stocks like PT Telkom, cigarette maker Gudang Garam and HM Sampoerna, which accounted for about 50 percent of market capitalization in the local market.

They said most foreign brokerage houses like Credit Lyonnais, Merill Lynch and Jardine Fleming Nusantara were among the net buyers yesterday

Other Asian leading bourses also gained ground yesterday with Hong Kong continuing to rally over strong support from China's new premier for its currency, and Japanese shares were also higher on a stronger yen, dealers said.

In Tokyo, the key Nikkei stock average of 225 leading issues on the Tokyo Stock Exchange gained 151.45 points to end at 16,830.47. The Topix index of all issues on the first section rose 5.49 points to 1,255.06.

In Australia, the Australian Stock Exchange's key barometer, the All Ordinaries index, rose 2.6 points to 2,775.2. The All Resources index fell 2.8 points to 1,160. 2 while the All Industrials rose 8.7 points to 4,793.3.

In Singapore, the key Straits Times Industrials index of the Stock Exchange of Singapore closed down 19.64 points to 1,679.11, off a low of 1,667.84, while the broader All-Singapore index fell 4.22 points to 433.76.

In Kuala Lumpur, the 100-share weighted composite index closed up 0.20 points at 731.24 on a turnover of 277.954 million shares.

In Bangkok, the SET composite index dropped 3.80 points to 499.75 points, while the SET 50 select index edged down 0.46 points to 36.71.

In Manila, the Philippine Stock Exchange index shed 14.25 points to 2,274.14.

In Seoul, the composite index closed up 4.22 points at 525.95, off a high of 530.40.

In Shanghai, the B share index rose 0.19 points to 55.72 points, while the A share index of locally traded shares fell 1.39 point, or 0.1 percent, to 1,251.56 points.

In Taipei, the Taiwan Stock Exchange weighted price index moved up 44.82 points to 8, 904.23.

In New Zealand, the benchmark NZSE 40 share index rose 5.93 points to 2,350.02.

In London, stocks posted a substantial gain in the first half of the yesterday session, the Footsie index tacking on 42.1 points or 0.70 percent to stand at 6,040 points in early afternoon as trading continued.

In Frankfurt, the DAX index broke up through the symbolic 5,000-point level yesterday, finishing the official session at 5,001.55 points, up a strong 1.32 percent from the official close on Thursday.