Indonesian share prices closed up 0.80 percent on Thursday, led by a technical rebound in index heavyweight Telkom after recent losses, dealers said. The Jakarta Stock Exchange composite index closed up 14.004 points at 1,767.802 on volume of 2.95 billion shares worth 2.45 trillion rupiah (270.12 million dollars).
Gainers led losers 80 to 63, with 78 stocks unchanged. The rupiah was trading at 9,060/9,070 to the dollar against 9,065/9,070 late Wednesday. After a pullback in recent days, the market now appears to have found support, and given the country's improved economic fundamentals, should be in line for further upside, Oos Rosadi, an institutional sales representative with Mandiri Securities, said. "Regardless of the recent falls, fundamentally nothing has changed. The macroeconomic conditions in the country remain solid," he said.
Telkom, which led Thursday's rebound, had been sold off partly over fears the government plans to grant fixed telephone licences to new entrants. "But investors should have realised now that this will take time and it will not be easy for any new player to grow a business here. Therefore as the incumbent Telkom is better positioned to expand its business," he said.
Telkom finished up 200 rupiah at 9,900 while rival Indosat was up 50 at 5,700. Tin miner Timah extended its recent run on the back of stronger tin prices to end 300 higher at 3,900. Among other gainers Semen Gresik rose 900 to 36,000, Inducement was up 50 at 5,950 and Bumi Resources added 10 to 880.
Bank Danamon was up 50 at 6,250, Bank Rakyat Indonesia was 50 higher at 5,200, Medco Energi added 25 to 3,375 and its unit Apexindo was up 10 at 1,810. Some major stocks, however, were still being pressured by profit-taking. Astra International dropped 400 to 15,850, Bank Mandiri declined 25 to 2,850, and Antam shed 150 to 8,050. INCO meanwhile finished unchanged at 31,000 after announcing it may cut in its nickel production shortly due to below average rainfall.
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