Indonesian share prices closed 1.23 percent higher on Wednesday on follow through buying that helped the main index finish at a new all-time high, dealers said. They said a strong rebound in index heavyweight Telkom also helped the index reach a new record finishing level.
The Jakarta Stock Exchange composite index closed up 25.492 points at 2,104.246, eclipsing the previous best of 2,078.754 on Tuesday. Volume was 5.97 billion shares worth 5.84 trillion rupiah (670.49 million dollars). Gainers outnumbered losers 121 to 52, while 56 stocks were unchanged.
The rupiah was trading at 8,705/8,710 to the dollar against 8,683/8,688 late Tuesday. "Apart from Telkom's strong rebound, I would say it was a liquidity driven rally today," said Santiko Suherman, head of research at Batavia Prosperindo Asset Management.
He said the rupiah's strong appreciation continued to prompt buyers in to the market as they expect the firmer local unit to provide leeway for further interest rate cuts by Bank Indonesia. Telkom rose 300 rupiah or 3.19 percent to 9,700 on a rebound sparked by the overnight gain in the firm's American Depository Receipts, while rival Indosat lost 50 to 7,000.
Car dealer Astra International gained 650 rupiah or 4.0 percent to 16,850, Unilever Indonesia rose 200 to 6,250, crude palm oil producer Astra Agro increased 450 or 3.1 percent 14,850. Bank Rakyat Indonesia added 150 rupiah to 6,300, Bank Central Asia rose 50 to 5,550, Bank Danamon gained 50 to 7,350, and cigarette maker Gudang Garam rose 250 to 11,250.
Toll road operator Citra Marga gained 175 rupiah or 5.79 percent to 3,200 on news that the government plans to raise the tariff on toll roads by 20 percent in August. Among losers, gas distributor Perusahaan Gas Negara declined 100 rupiah to 10,350, United Tractors fell 200 to 7,300, coal miner Bukit Asam lost 150 to 4,750, tin miner Timah dropped 150 to 12,950, nickel miner Inco dropped 2,450 to 63,700 while rival Antam fell 50 to 15,750.
Bank Mandiri finished flat at 3,250.