Jakarta share prices finished up 1.48 percent on Thursday at a record closing high after the Dow Jones Industrials index finished above 13,000 points for the first time overnight, dealers said. They said the main index also finished above the psychologically important level of 2,000 points, on the back of Wall Street's surge.
Upbeat local factors including a stronger rupiah, solid corporate earnings and hopes of further interest rate cuts were also responsible. The Jakarta Stock Exchange composite index closed up 29.362 points at a new record high of 2,016.033. It also touched a fresh all-time intraday high of 2,018.206.
Volume was 6.96 billion shares worth 5.49 trillion rupiah (604.82 million dollars). Gainers led losers 138 to 49, while 52 stocks were unchanged. The rupiah was trading at 9,075/9,077 to the dollar, strengthening from 9,080/9,085 late Wednesday.
"It is the Wall Street record close and global markets strength that supported the rally here," said Juanita Hutami, a fund manager with Ciptadana Asset Management. She added that domestic factors such as expectations for low inflation in April and some strong first quarter corporate earnings, also aided sentiment.
Hutami noted however that after Thursday's sharp rise most stocks are now richly valued and so will be prone to profit taking. Most blue chips gained, with index heavyweight Telkom up 300 rupiah at 10,800 while its rival Indosat rose 250 to 6,750.
Car dealer Astra International added 450 rupiah to 14,950 while its unit Astra Agro gained 1,100 or 7.3 percent to 16,200 on firm crude palm oil prices. Nickel miner Antam rose 950 or 6.4 percent to 15,850 while rival Inco gained 750 to 61,600 and coal miner Bukit Asam increased 125 to 4,025.
Banks were mixed. Bank Danamon rose 150 to 6,750. The company announced after the close of trade its first quarter to March net profit jumped to 482 billion rupiah (531.01 million dollars) from 251 billion (276.52 million dollars) a year ago.
Bank Rakyat Indonesia gained 50 to 5,500, Bank Central Asia dropped 50 to 5,350, Bank Mandiri was flat at 3,175 and Bank International Indonesia fell 15 or 7.0 percent to 200 after reporting a profit fall in the first quarter.
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