Indonesian share prices jumped 1.99 percent to another record close on Monday, driven by Wall Street's gains and expectations of strong first-half corporate results, dealers said. The Jakarta Stock Exchange composite index rose 44.293 points to 2,271.344, off a new intraday high of 2,272.719.
Volume was 4.96 billion shares worth 5.74 trillion rupiah (635.31 million dollars). Gainers led decliners 127 to 81, with 58 stocks unchanged. The rupiah was at 9,026/9,028 to the dollar compared to 9,030/9,035 late Friday.
Mandiri Sekuritas analyst Rani Sofjan said the market's rise was driven by gains on Wall Street Friday, firmer regional markets and expectations that a number of key companies will report strong first half earnings. "I think it was also driven by strong liquidity in the market as (investors) shifted their money away from bank deposits to higher-yield investment vehicles such as equities following the latest rate cuts," she said.
She said expectations that lower interest rates would give car sales a boost in the second half gave Astra International shares a lift. PT Toyota Astra Motor (TAM), a 51-49 percent joint venture between PT Astra International and Toyota Motor Corp, said Monday its domestic car sales in June reached 13,300 vehicles, up 0.9 percent from 13,182 in the preceding month. Astra International rose 1,150 rupiah or 7.4 percent to 19,150, off a high of 20,050 rupiah.
Banks were also higher on expectations of margin expansion in the second half as a result of the latest rate cut. Bank Mandiri, the country's largest bank in terms of assets, rose 225 rupiah or 7.0 percent to 3,450, Bank Central Asia added 150 or 2.6 percent to 5,850 and Bank Rakyat Indonesia advanced 300 or 4.9 percent to 6,400.
Indosat gained 200 rupiah or 3.0 percent to 6,900 after Citigroup upgraded the stock to 'buy' from 'sell' and upgraded its earnings forecast for the telecommunications company. Telkom advanced 100 to 10,500.
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