Indonesian share prices rose 2.44 percent on Tuesday to a record high amid optimism that interest rates will be cut further, dealers said. The Jakarta Stock Exchange composite index closed up 45.192 points at 1,894.576, a fresh closing high following yesterday's record level.
Volume was 3.09 billion shares valued at 4.53 trillion rupiah (498.07 million dollars). Gainers led decliners 139 to 32, with 59 stocks unchanged. The rupiah strengthened to 9,090/9,095 to the dollar, compared to 9,109/9,113 late Monday.
Europeregrine Securities analyst Poltak Hotradero said the market's gains were led by blue chips such as Telkom, Astra International and Perusahaan Gas Negara, as well as banking stocks.
"I think investors were expecting that the central bank would further cut the benchmark interest," he said. The rate currently stands at 9.0 percent and Bank Indonesia holds its policy meeting on Thursday. Hotradero said that foreign investors appeared to have returned to the market, lured by upbeat company results and an improving economy.
Bank Mandiri gained 150 rupiah, or 5.94 percent, to 2,675, Bank Rakyat Indonesia added 200, or 3.85 percent, to 5,400, Bank Central Asia rose 200, or 3.81 percent, to 5,450 and Bank Niaga surged 70, or 9.21 percent, to 830. Index heavyweight Telkom added 100 rupiah to 10,000 and Indosat edged up 50 to 6,400.
Astra International soared 600 rupiah, or 4.55 percent, to 13,800 on hopes a rate cut will boost its car sales this year, Perusahaan Gas Negara added 350, or 3.74 percent, to 9,700 and Bumi Resources was up 20 at 1,330.
Timah was up 350 rupiah, or 2.89 percent, at 12,450, Aneka Tambang surged 750, or 6.28 percent, to 12,700 and Inco soared 3,550, or 6.28 percent, to 60,050.
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