Yohanes Obor & Bloomberg

Shares of Bank Negara Indonesia climbed 3.9 percent to Rp 1,890 on Friday, helping the Jakarta Composite Index post a slight gain of 1.2 percent. PT Bumi Resources was among the biggest losers. (SP Photo)

Indonesian Shares Gain Ground Amid High Turnover

The Indonesian Stock Exchange enjoyed very high turnover on Friday as three large shareholders in PT Delta Dunia Petroindo collectively sold six billion shares, around 88 percent of the company, at between Rp 1,350 (14 cents) and Rp 1,400 a share, on the negotiated market.

Delta, a property firm diversifying into resources, closed down Rp 300 at Rp 1,600. On Thursday, it said it had signed an agreement on Oct. 29 to borrow $260 million from coal miner PT Bukit Makmur Mandiri Utama, which Delta later plans to acquire.

Some 9.6 billion shares worth Rp 10.9 trillion changed hands on Friday, mainly as a result of the Delta Dunia trading. Gainers led losers 119 to 62.

Overall, Indonesian shares ended higher, tracking gains in regional and European markets prompted by the Dow’s rebound on Thursday.

The Jakarta Composite Index rose 27.89 points, or 1.2 percent, to 2,395.11. It rose 1.2 percent for the week, the first advance in three weeks.

“The JCI posted gains as it just followed the positive regional market after Dow Jones rebounded on Thursday’s trading,” Purwoko Sartono, an analyst at PT Panin Sekuritas, said.

Banking stocks supported the index’s gain with sentiment spurred by the banks’ positive results in the nine months through September, he said.

PT Bank Rakyat Indonesia rose 1.9 percent to Rp 7,450 and PT Bank Negara Indonesia climbed 3.9 percent to Rp 1,890. PT Bank Danamon increased 2.8 percent to Rp 4,550 while PT Bank Central Asia gained 2.7 percent to Rp 4,725.

Purwoko said the market had bounced from positive to negative during the week, as the unfolding scandal involving the Corruption Eradication Commission and the National Police, had captured investors’ attention.

The rupiah advanced against the dollar on Friday, headed for its biggest weekly gain in a month, as the prospect of faster economic growth helped draw funds from abroad, said Olivier Desbarres, a foreign-exchange strategist at Credit Suisse Group in Singapore.

The rupiah rose 0.8 percent to 9,447 to the dollar on Friday, compared to 9,520 on Thursday.

“We still like the macroeconomic growth story in Asia, including Indonesia, over the next three months,” Desbarres said. “The rupiah should continue to appreciate gradually next year.”

PT Gudang Garam climbed 7.1 percent to Rp 17,250 while PT Astra International rose 1.9 percent to Rp 30,350.

Among the biggest losers was PT Bumi Resources, which lost 2.1 percent to Rp 2,325.

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