JAKARTA (Thomson Financial) - Indonesian shares were higher in early trade
Monday supported by gains on Wall Street on Friday and the release of
strong-first quarter earnings by major companies.
But gains were capped by profit-taking in banks on caution ahead of the
central bank's interest rate policy meeting tomorrow, which was originally
planned for Thursday.
On Friday, the government said the consumer price index (CPI) rose 8.96
percent in April from a year ago and was up 0.57 percent from March, driven by a
rise in kerosene prices. In March, inflation rose 8.17 percent from a year
earlier and was up 0.95 percent from February.
The April CPI figure was largely within market expectations.
Most analysts do not expect the April inflation data to prompt a rate hike
by Bank Indonesia at tomorrow's monthly policy meeting. They said a rate hike
will not be the right prescription for reining in inflation at this time, which
is supply-led rather than demand-driven.
CIC Securities analyst Willy Sanjaya said strong earnings reported so far by
key Indonesian companies including mining, plantations and banks continued to
provide support to the market.
"The market also stayed in positive territory on hopes that the central bank
will keep its benchmark BI rate unchanged tomorrow," Sanjaya said.
At 9.56 a.m. (0256 GMT), the composite index was up 17.78 points or 0.8
percent at 2,359.85.
Among key gainers, coal giant Bumi Resources rose 2.3 percent to 6,700
rupiah, diversified group Astra International added 1.7 percent to 21,400 rupiah
and Medco Energi gained 3.1 percent to 4,125 rupiah.
Cooking oil producer Tunas Baru Lampung surged 20 percent to 450 rupiah
after the company announced early Monday that its first-quarter net profit
surged to 128.23 billion rupiah ($13.89 billion) from 2.1 billion rupiah a year
earlier.
Nickel miner Inco added 1.6 percent to 6,650 rupiah, Perusahaan Gas Negara
rose 0.4 percent to 12,200 rupiah and heavy equipment distributor United
Tractors gained 1.2 percent to 12,700 rupiah.
roffie.kurniawan@thomson.com
rk/zr
hkp/zr
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