Indonesian share prices closed 0.93 percent higher on Monday on a technical rebound in blue chips such as Telkom but trade was subdued as investors waited to see if the US Federal Reserve hikes interest rates again at its meeting Tuesday, dealers said.
The Jakarta Stocks Exchange composite index rose 9.865 points at 1,066.591 on volume of 571 million shares worth 941.71 billion rupiah (91.69 million dollars.) Advancers led decliners 53 to 48, with 72 stocks unchanged.
The rupiah was at 10,145/10,155 to the dollar compared to Friday's level of 10,150/10,160.
"It's a thin market as investors appear to be cautious," said Andalan Artha Advisindo Sekuritas analyst Arianto Reksoprodjo.
There was uncertainty at to whether the Fed would maintain the pace of its interest rate hikes when it meets tomorrow, he said, with some suggesting it may pause to take account of Hurricane Katrina.
A slowdown in US rate hikes would also ease pressure on Bank Indonesia to raise its benchmark rate. Uncertainty about the size of the government's planned fuel price hike also kept many investors on the sidelines, Reksoprodjo said.
Telkom rose 150 rupiah to 5,300, extending Friday's rebound, while sister Indosat gained 200 rupiah to 5,300.
State-owned Bank Mandiri added 40 rupiah at 1,410, Bank Rakyat Indonesia was up 25 at 2,625, Bank Central Asia rose 25 rupiah to 3,450 while Bank Danamon Indonesia also added 25 to 4,325. Car dealer Astra International was flat at 10,150.
Cigarette firm Gudang Garam rose 250 rupiah to 10,550.
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