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Jakarta stocks end up, political concerns linger

JAKARTA: Jakarta stocks closed higher on Friday on bargain hunting in some undervalued stocks led by blue chips, but trading was relatively thin with sentiment dominated by donestic political worries.

Dealers said investors targetted the dollar-based stocks and those companies which are already or expected to soon report improved 1999 performances.

The Jakarta composite index closed up 20.69 points, or 3.4 percent, at 635 points.

"Today's robust stock index is mainly pushed by bargain hunting on big shares that had weakened considerably over the last two weeks," said Adrian Rusmana, head of research, at BNI Securities.

Dealers said many investors were watching for further developments in the standoff between President Abdurrahman Wahid and some of his top generals.

Wahid has ordered General Wiranto to quit his cabinet post but Wiranto refuses to go, fuelling fears it could trigger a coup, though most political analysts say that outcome is very unlikely.

Cigarette makers H.M. Sampoerna and Gudang Garam rebounded on expected better results and the market's judgement that they had become undervalued after recent falls.

Sampoerna was up 1,000 rupiah at 17,150 and Gudang Garam rose 625 rupiah to 16,525.

The government's international telecoms firm, Indosat, gained 500 rupiah, or 3.5 percent, to 14,700 and auto giant PT Astra International rose 100 rupiah to 3,700 after both released better-than-expected 1999 results.

News the Indonesian Bank Restructuring Agency (IBRA) is optimistic it can sell its Astra stake at above 4,000 rupiah a share also buoyed the stock.

Dollar-based paper company Indah Kiat rose 25 rupiah to 2,450 on 7.3 million shares.-Reuters