Jakarta shares up

Jakarta share prices closed 0.51 percent higher on Thursday, driven by late buying in some major banks after Bank Indonesia cut its key policy rate by 50 basis points to 10.75 percent, dealers said. The Jakarta Stock Exchange composite index closed up 7.893 points at 1,544.978, off a high of 1,549.457 and a low of 1,534.968.
Volume was 2.53 billion shares worth 1.89 trillion rupiah (205.14 million dollars). Gainers led losers 76 to 39, while 82 stocks were unchanged. The rupiah was little changed at 9,210/9,213 to the dollar against 9,215/9,220 Wednesday.
An analyst with a regional brokerage said Bank Indonesia's decision to cut its key policy rate by 50 basis points was expected and largely factored into prices though the news appeared to have sparked some buying in the bank sector which will be the first to benefit from the move.
"We can now expect banks to have a higher interest margin and they are also likely to be able to expand credit loans at a faster pace," he said. Among major stocks, Bank Mandiri was up 25 rupiah at 2,350, Bank Rakyat Indonesia was up 75 at 4,900, Bank Danamon was up 200 at 5,600, Bank Niaga was up 40 at 810, Bank Panin was up 20 at 505 and Bank Permata was up 30 at 820.
Index heavyweight Telkom was down 50 at 8,400, Indosat was unchanged at 5,150, Astra International gained 50 at 12,750, and Gudang Garam was up 150 at 10,600.