Jakarta shares surge

20 Apr, 2006

Jakarta share prices closed 2.53 percent higher on Wednesday with the index ending at a record high for the fifth straight day as foreign investors continued to snap up blue chips, dealers said.
The Jakarta Stock Exchange composite index closed up 35.852 points at 1,453.227 on volume of 3.78 billion shares valued at 3.55 trillion at 8,930/8,940 to the dollar compared to Tuesday's level of 8,980/8,990.
Select blue chips such as Telkom, Indosat and Astra International benefited from the largest public pension fund in the United States, the California Public Employees' Retirement System (CalPERS), adding Indonesia to its list of emerging equity markets for investment.
"There's still positive sentiment from the CalPERS move to include Indonesia among its investment targets," said Citi Pacific Securities analyst Hendri Effendi.
CalPERS said Indonesia made it to its list of permissible emerging markets due to the country's improved political stability.
Effendi said the high trading volume seen during Tuesday's market rally indicated the presence of strong buying interest that persisted until Wednesday, allowing the index to finish at another record high.
Among major stocks, index heavyweight Telkom added 150 rupiah to close at 7,600 while Indosat was up 175 at 5,200. Car dealer Astra International gained 700 to 12,950. State gas distributor Perusahaan Gas Negara advanced 250 to 10,450 and cigarette firm Gudang Garam climbed 100 to 11,000.

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