Jakarta shares surge

Jakarta share prices finished 1.2 percent higher on Friday as late-session gains by Telkom and banks drove the main index to close at its high for the day, dealers said. The Jakarta Stock Exchange composite index closed up 25.45 points at 2,143.11, off a low of 9,092,97. Volume totalled 4.68 billion shares, valued at 3.3 trillion rupiah (350.50 million dollars).
For the week, the main index gained 234.47 points, or 12.3 percent. Gainers led decliners 127 to 71, with 45 stocks unchanged. The Indonesian rupiah was trading at 9,405/9,415 to the US dollar, compared to 9,390/9,400 late Thursday. "The market was weak for much of the day in line with regional markets," Henan Putihrai analyst Thombos Sitanggang said.
However, strong buying interest in Telkom and banking stocks minutes before the market close drove the main index to end in positive territory Friday, he said. He said banking stocks continue to attract interest as most Indonesian banks posted strong results in the first half and should be able to maintain this trend in the second half.
"Moreover, investors here believe that the subprime crisis in the US should have no direct impact on local banks," Sitanggang said. Telkom gained 350 rupiah or 3.3 percent to 10,850, tracking the overnight gains in its New York-traded American Depository Receipts (ADRs), while rival Indosat was unchanged at 7,300.
Oil and gas company Medco Energi fell 50 rupiah to 4,150, after rising to 4,500, as investors opted to lock in profits in the afternoon session. Medco posted gains this morning after the company announced late Thursday that Japan's Mitsubishi Corp has acquired a 39.4 percent stake in Encore Energy, Medco's major shareholder, for 353 million dollars.
Medco Energi said Mitsubishi now holds an indirect 19.97 percent stake in Medco. Bank Negara Indonesia (BNI) was higher after reporting a 21.5 percent rise in first-half earnings. The bank said net profit rose to 1.02 trillion rupiah on a sharp rise in fee-based income.
BNI surged 80 rupiah or 4.5 percent to 1,860. "BNI's solid first-half results seemed to have sparked buying interest in the stock," CIMB-GK Securities analyst Mulya Chandra said. Among other financials, Bank Mandiri rose 50 rupiah to 3,025, Bank Rakyat Indonesia added 50 to 5,950 and Bank Central Asia added 100 to 6,000. State gas distributor Perusahaan Gas Negara edged up 50 rupiah to 9,950.