Indonesian share prices closed 1.12 percent higher on Monday, led by index heavyweight Telkom on hopes that the company's foreign debt burden will ease if the rupiah sustains its recent recovery, dealers said. The Jakarta Stock Exchange composite index closed up 11.932 points at 1,080.207 on volume of 1.28 billion shares worth 1.60 trillion rupiah (168,69 million dollars.) Gainers led losers 70 to 46, with 74 stocks unchanged. The rupiah closed little changed at 9,480/9,485 to the dollar against Friday's of 9,483/9,488. The local unit managed to recover from past the 9,500 mark in early morning trade when it fell in line with regional units following the release of strong US jobs data, foreign exchange dealers noted.
"There was nothing new in the market; the only positive thing remains the strong rupiah," said Citi Pacific Securities analyst Hendri Effendi.
He said the stronger rupiah improved sentiment on Telkom, which has significant foreign exchange debt. Trade in Telkom and Indosat was heavy last Friday, indicating the possibility of continued strong buying interest in both stocks this week, Effendi said.
He said concerns over interest rates have also eased after the recent local rate hike helped the rupiah recover from its earlier lows.
Telkom closed up 150 rupiah at 4,650 rupiah while Indosat was up 75 at 4,850, with dealers noting both stocks were seeing a rebound after recent losses.
Indosat may have also benefited from talk that it will hold a road show for its planned bond issue this week, Effendi said. Indosat last month said it was planning a 300-400 million dollar bond this year to fund its expansion.
Cigarette firm Gudang Garam was down 400 rupiah at 14,600 while Sampoerna was up 50 at 10,450.
Car distributor Astra International was up 50 at 10,900.
Bank Mandiri was up 70 rupiah at 1,740, recovering its falls last month due to an ongoing probe into the bank's loan disbursements.
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