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Jakarta stocks end up as protest fears fade

JAKARTA: The Jakarta stock index closed slightly up on Wednesday as investors picked up undervalued blue chips after a large demonstration in the capital failed to happen.

Gains in noodle maker Indofood and telco Telkom helped hold the index barely in positive territory, but giant conglomerate Astra failed to hang on to early gains amid the announcement of bidders for a key stake.

After falling around three points at one stage, the composite index closed up 1.01 points, or 0.17 percent, at 584.43.The index was volatile during the day, gaing about eight points in morning trade as some blue chips bounced back.

But then sentiment weakened after the midday break following a statement from President Abdurrahman Wahid saying police in the capital were on red alert in anticipation of massive protests.

However there was no major protest or trouble and the city was peaceful except for a minor scuffle between police and students at an anti-corruption protest.

Shares in Indofood were up 150 rupiah at 5,600 as analysts said the shares were considered undervalued. Telkom climbed 75 rupiah to 3,700.

Auto company Astra International closed lower 100 rupiah at 3,725 after early gains of 50 rupiah.

"The announcement of bidders did not affect Astra. Investors will wait for the winner or the price," said an analyst from Trimegah Securindo.

The Indonesian Bank Restructuring Agency (IBRA) said on Wednesday it had shortlisted three groups bidding for its stake of around 40 percent in Astra and expected a winner to be announced by end-March.

An overnight rebound on Wall Street also helped the market, dealers said.

Dealers said concerns about higher-than-expected domestic inflation due to the government's plan to raise fuel and electricity prices, coupled with concerns over a US interest rate hike would continue to overshadow the market.

Some 192 shares were traded with losers leading gainers 52 to 43 on turnover estimated at 733 billion rupiah.-Reuters