Indonesian share prices closed 2.3 percent stronger on Thursday with the main index finishing at a fresh all-time high, after the US Federal Reserve cut its benchmark interest rate, dealers said. Indonesia's October inflation data that came in within expectations also drove the market up, they added.
The Jakarta Stock Exchange composite index was up 61.17 points at a new all-time high of 2,704.66, off a record intraday high of 2,732.67, surpassing the previous intraday record of 2,689.92 set on October 30.
The previous closing all-time high was set on October 29. Volume was 5.34 billion shares valued at 8.7 trillion rupiah (956.04 million dollars). Gainers led decliners 93 to 91, with 78 stocks unchanged. The Indonesian rupiah was trading at 9,095/9,100 to the US dollar compared to 9,105/9,110 late Wednesday.
Nickel miner Inco surged 13.2 percent during the session, leading the market higher, after the company said Thursday it will pay a 2007 interim dividend of 0.9787 US dollars per share in light of its strong nine-month earnings and its current solid financial condition.
Earlier the government released figures which showed the consumer price index rose 6.88 percent in October from a year earlier, after rising at an annual rate of 6.95 percent in September. "Mining and energy-related stocks drove our market higher to a new record close today," said Ryan Ariadi Suwarno, analyst at Dongsuh Kolibindo Securities.
"Investors are buying these stocks as they are considered defensive stocks, unaffected by the current oil price rise," Suwarno said. Apart from strong third-quarter results, Inco shares also soared, supported by news that the company will pay a 2007 interim dividend "which is extraordinarily high."
Suwarno said market sentiment received a boost following the Fed's rate cut overnight, as the US rate cut is seen to ease pressure on the Indonesian central bank to also cut its benchmark BI rate before the year is over.
Inco surged 12,900 rupiah to 102,100, off an all-time high of 111.600. Nickel and gold miner Antam gained 275 to 3,625 after the company said Wednesday its net profit in the first nine months of the year surged 374 percent to 3.83 trillion rupiah. Indonesia's biggest tin exporter, state-owned Timah, rose 1,500 to 21,000 after it said net profit in the first nine months soared more than 19-fold on a sharp increase in the price of tin and higher sales volumes.
Index heavyweight Telkom rose 400 to 11,150 while its rival, Indosat, turned flat at 8,700, after having risen to 8,850. Astra International added 950 to 26,550, off an all-time intraday high of 27,250, after announcing nine-month net profit was up 53 percent.
Coal miner Bumi Resources dropped 50 rupiah to 4,725, off a high 4,950, on profit-taking. The company said Thursday its net profit in the first nine months surged more than fivefold, driven by gains from the sale of shares in two subsidiaries. State gas distributor Perusahaan Gas Negara added 100 to 14,100. Plantation stocks were mostly up, with Bakrie Sumatra Plantation gaining 20 at 2,010, Astra Agro Lestari finishing up 750 at 23,250.
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