Fed Rate Decision Lifts Shares
May 03, 2011
The Jakarta Stock Exchange Index edged up 2.596 to 542.201 on volume of 110.7 million shares. Gainers led decliners 46 to 39, with 55 stocks unchanged. Investors were hopeful that the decision by the U.S. Federal Reserve's policy-making arm to leave interest rates unchanged would mean a rate cut in Indonesia, analysts said. However, lingering worries over the local political situation kept foreign investors away from the market, observers said. Foreign buying was limited to telecommunication stocks Telekomunikasi Indonesia and Indosat following an increase in their American depositary receipts on the New York Stock Exchange Tuesday. On the local exchange Wednesday, Telekom rose 25 rupiah to 3,300, and Indosat gained 225 rupiah to 7,375. Berlian Laju Tanker rose 175 rupiah to 2,375. Duta Anggada Realty added 50 rupiah to 2,375 on speculation that it will form a strategic alliance with a partner from Singapore. Indocement gained 175 rupiah to 6,450 due to bargain-hunting. On the foreign board, Astra International increased 175 rupiah to 2,950; Lippo Bank slid 25 rupiah to 3,400; and transport concern Taber Gagnon was unchanged at 1,900 rupiah. On the regular board, Bank Duta gained 350 rupiah to 1,775; seasoning company Miwon rose 150 rupiah to 950; and Panin Insurance added 100 rupiah to 900. Cable maker Voksel Electric decreased 175 rupiah to 625; toy maker Asiana lost 100 rupiah to 1,350; and tile maker Keramika Indonesia fell 125 rupiah to 1,850.
