Jakarta share prices closed 0.28 percent higher on Friday on follow-through buying in big caps led by the country's biggest car dealer Astra International, dealers said. They said that the latest interest rate cut would boost corporate earnings in the second half, sending the benchmark index to yet another record closing.
Other key gainers included coal miner Bumi Resources and nickel miner Antam. Bank Indonesia yesterday cut its benchmark interest rate, called the BI rate, by 25 basis points to 8.25 percent. With the latest cut, the central bank has trimmed the key rate by a cumulative 450 basis points since May 2006.
The composite index closed up 6.120 points at 2,227.051, beating the all-time high of 2,220.931 set Thursday. The index hit record finishings for five days in a row. Volume was 5.75 billion shares worth 4.29 trillion rupiah (474.82 million dollars). Gainers led losers 123 to 72, while 65 stocks were unchanged.
For the week, the main index gained 87.773 points or 4.1 percent. Amcapital Indonesia analyst Bagus Hananto said the strong interest in Astra is an indication that investors expect the company to report strong earnings in the second quarter given the recovery in its automotive business, as well as in its palm oil and mining business units.
Astra International rose 1,000 rupiah or 5.9 percent to 18,000. Bumi Resources added 125 or 5.0 percent to 2,625 after the recent rise in coal prices amid strong global demand. Antam gained 700 or 5.4 percent to 13,600 as investors are speculating the stock will go up prior to its stock split, to take effect next Thursday.
Among other gainers, gas distributor Perusahaan Gas Negara extended its rebound from yesterday after recent sell-offs, supported by news that the government will set a gas price hike formula for gas that will keep the company profitable.
PGN rose 100 or 1.1 percent to 8,900. The index upside was partly capped by profit-taking in index heavyweight Telkom after its recent gains. The stock lost 150 or 1.4 percent to 10,400 rupiah.
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