IDX Opens Higher on Active Demand for Tobacco, Automotive Shares

 
 
 
 
 
 
 
 
 
 

Jakarta, - Early trading at the Indonesian Stock Exchange (IDX) on Thursday was marked by a lively atmosphere with market players chasing cigarette and automotive industry shares, causing the composite stock price index to rise 0.81 percent.

The IDX index rose 21,264 points to 2,654.136 points and the LQ-45 index increased 523.356 points to 4.891 points or up 0.94 percent.

PT Millennium Danathama Securities' stock market analyst Ahmad Riyadi said trading was dominated by stock buying activity following a strengthening of stocks at Wall Street and regional stock exchanges, including Tokyo's.

"We expect the IDX index will bounce back at the close of the first session, because foreign funds are entering is quite large amounts," he said.

Riyadi said e market players were actively buying shares of superior tobacco industry sectors such as Gudang Garam, HM Sampoerna, and such automotive companies as Astra International. Increased demand for Astra Agro Lestari and United Tractors stocks also drove up small-cap shares.

Market players' buying activity was expected to continue until the market's close in the afternoon, after the previous day's trend of selling of stocks, he said.

This week's IDX index was expected to reach 2,700 points due to the influence of positive factors on the market.

Meanwhile, the index was also expected to close at to 2,800 if the inflow of short term foreign funds continued.

Foreign players would in the first quarter of 2010 tend to make profit-taking moves because if the IDX index can reach 2,800 points in the quarter, it would be countered by stock sell offs, he said.

Stocks that gained on Thursday included HM Sampoerna which rose Rp1,450 to Rp15m700, Gudang Garam which went up Rp150 to Rp23,700, Astra International that increased Rp550 to Rp35,650, Astra Agro Lestari that gained Rp450 to Rp25,000.

United Tractor shares also increased Rp450 to Rp18,200, BCA shares rose Rp50 to Rp5.050, Telkom and the Bumi both appreciated by Rp50 to Rp9,450 and Rp2,800 respectively.