Share prices closed sharply higher Thursday, with the main index finishing at an all-time high driven by expectations of robust first-half earnings from key Indonesian companies.
The results announcements will begin in earnest starting late this month.
Sentiment was further lifted by advances in key East Asian markets, with Telkom as well as mining and banking stocks leading the gains.
The composite index closed up 39.1 points or 1.7 percent at 2,333.7, a new all-time closing and intra-day high.
Volume was 5.4 billion shares valued at 4.6 trillion rupiah.
Gainers led decliners 135 to 50, with 72 stocks unchanged.
The rupiah was trading at 9,095/9,095 to the US dollar, compared to 9,090/9,100 late Wednesday.
'Mining and banking stocks really drove our market to a new high today,' Eurocapital Peregrine Securities analyst Poltak Hotradero said.
'I think investors are buying the stocks (in mining and banking) as they expect that these sectors likely posted strong results in the first half of the year,' Hotradero said.
He said the rise in key markets in the region such as Tokyo and Hong Kong also helped boost domestic sentiment.
Index heavyweight Telkom gained 300 rupiah or 2.7 percent to 11,300, rival Indosat added 200 rupiah or 2.7 percent to 7,600 and Bakrie Telecom added 15 rupiah or 3.5 percent to 435.
Coal producer Bumi Resources surged 175 rupiah or 6.9 percent to 2,700 after UBS (nyse: UBS - news - people ) Securities raised its price target on the stock to 3,150 rupiah per share from 2,275. The upgrade in target price comes after the brokerage also upgraded its earnings estimates for the company on the back of projected higher coal prices over the medium term.
UBS said it recently upgraded its benchmark coal price projections to 70 US dollars per ton for 2008 and 75 US dollars per ton for 2009 from 58 dollars previously.
Rival Bukit Asam also surged 200 rupiah or 3 percent to 6,750, nickel miner Inco (nyse: N - news - people ) added 900 or 1.7 percent to 54,500, Antam added 125, or 4.8 percent, to 2,700 and tin producer Timah climbed 1,200 rupiah or 9.4 percent to 14,000.
Bank Mandiri, the country's largest bank in asset terms, gained 125 rupiah or 3.6 percent to 3,625, while Bank Central Asia rose 50 rupiah to 5,950 and Bank Niaga added 30 rupiah or 3.3 percent to 940 ahead of the release of its first half results tomorrow.
Bank Danamon edged up 100 rupiah or 1.2 percent to 8,150.
Banking stocks attracted further support after DBS Vickers Securities Thursday upgraded to 'buy' from 'hold' its ratings on Bank Mandiri , Bank Central Asia and Bank Niaga in anticipation of strong second quarter to June and first half results.
Automotive company Astra International was up 100 rupiah or 0.5 percent to 18,700 after BNP Paribas (other-otc: BNPZY.PK - news - people ) said Thursday it was keeping its 'buy' rating on the company but raised its target price to 23,500 rupiah, as it expects car and motorcycle sales to continue to improve following the solid recovery in the first half to June. The previous target price was 20,500 rupiah.
source:www.forbes.com
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