Jakarta shares jump 7.1 percent

Indonesian shares jumped 7.1 percent on Friday on bargain hunting, helped by a firmer rupiah and a new rule raising the upward trading limit for stocks, dealers said. The Jakarta Composite Index rose 82.84 points to 1256.704 on volume of 6.6 billion shares worth 6.7 trillion rupiah (629.8 million dollars).
The rupiah ended at 11,000 to the dollar, down from 10,800 the previous day. "Foreign funds dominated the trade as downside risk now is likely lower and more manageable," a trader with Trimegah Securities told Dow Jones Newswires. The stock exchange raised from 10 percent to 20 percent the maximum amount a stock can gain per day. The downward limit was maintained at 10 percent.
The move boosted confidence, prompting investors to pick up blue chips, some of which have fallen more than 50 percent this year. Top gainers included heavy equipment company United Tractors, which jumped 20 percent to 3,150 rupiah and Bank Mandiri, which rose 20 percent to 1,560. Bank Rakyat Indonesia surged 19 percent to 3,450 rupiah and Bank Danamon gained 18 percent to 2,600.