Indonesian shares prices closed 7.0 percent higher on Monday in line with a strong regional rebound after the US Federal Reserve cut its discount rate on loans to banks last week, dealers said. The Jakarta Stock Exchange composite index closed up 132.95 points at 2,041.58 on volume of 4.47 billion shares worth 4.71 trillion rupiah (501.33 million dollars).
Last week, the index plunged 13.5 percent or 298.76 points. Gainers led losers 220 to 13, while nine stocks were unchanged. The rupiah was trading at 9,390/9,395 against the US dollar compared to 9,460/9,470 late Thursday.
With the bourse closed last Friday, trading resumed Monday just in time to bounce back, Indo Premier Securities analyst Aryanto Reksoprojo said. He said the recent sell-offs on the domestic market had been purely due to US credit market fears which should have been lifted by now with the Fed's latest move.
But investors would only be reassured that a firm recovery is under way if US and Asian stock markets extend their rally for few more days, he said. Over the next few days, he said he does not expect the main index to move up as much as it did on Monday. "I think that in the next two weeks, the main index may only rise to within the 2,100-2,150 points range," he said.
Index heavyweight Telkom rose 650 rupiah or 6.6 percent to 10,500 and coal giant Bumi Resources added 275 rupiah or 12.8 percent to 2,425. Among other key gainers, Unilever Indonesia added 650 rupiah or 11.4 percent to 6,350, Bank Mandiri gained 225 rupiah or 8.3 percent to 2,925, and Perusahaan Gas Negara rose 900 rupiah or 10 percent to 9,900.
Comments
Comments are closed.