Indonesia share prices closed higher on Monday on the back of strong first quarter results reported by index heavyweight Telkom and mild changes in inflation for April announced by the government, dealers said.
The Jakarta Stock Exchange composite index closed up 12.049 points, or 0.82 percent, at 1,476.455 on volume of 1.80 billion shares valued at 1.77 trillion rupiah (202 million dollars). The rupiah firmed to 8,767/8,772 against the dollar, compared to Friday's closing level of 8,800/8,810. Advancers led decliners 77 to 65, while 73 stocks were unchanged.
The consumer price index in April edged up by 0.05 percent month-on-month and 15.40 percent year-on-year, as a decline in food prices kept monthly inflation low, the Central Bureau of Statistics said earlier Monday.
Year-on-year inflation in April did not change much from the year-on-year rise in March, although the actual level remained high due to a low comparative base last year, the government said.
Analysts said they had expected an April inflation of 0.04-0.25 percent month-on-month and 15.39-15.64 percent year-on-year. "People hope that with the strong rupiah and with inflation under control, Bank Indonesia can start lowering its BI rate," said Ramayana Artha Perkasa analyst Inggit Puri Asih.
The central bank has kept its key interest rate unchanged at 12.75 percent since December 2005, following a 533 basis point hike throughout last year to curb inflation and support the rupiah.
Dealers said low interest rates help spur economic growth, improve the banking sector's performance or encourage investors to switch to the stock market from bank deposits or bonds.
Puri Asih said blue chips such as Telkom, mining stocks and late risers in the property sector led the market's rise. Telkom rose 150 rupiah to 7,700, while Indosat shed 100 to 5,300. State-owned Bank Mandiri gained 30 to 1,950, Bank Rakyat Indonesia lost 125 to 4,500 while Bank Central Asia advanced 25 to 4,400.
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