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Jakarta stocks end up led by auto, paper stocks

JAKARTA: Jakarta shares closed slightly higher on Monday with buying interest centred on paper and automotive stocks, especially Indah Kiat and Astra International.

Dealers said the rising trend of international paper price helped pulp and paper firm Indah Kiat. The trend of rising domestic car demand boosted sentiment in automotive shares led by Astra, which rose despite disappointment at the low price obtained in a major stake sale announced last on Friday.

The Jakarta composite index closed up 3.76 points, 0.7 percent, at 585.24 points. Some 177 shares were traded with gainers leading losers 48 to 39. Indah Kiat was the most active. The shares closed up 100 rupiah at 2,450 on 27.6 million shares.

News that the company plans to pay some of its dollar debts by mid-April was considered good for Indah Kiat, dealers said.

Shares in Astra rebounded 100 rupiah, or 2.7 percent, to 3,750 on 11.2 million shares traded. The shares had fallen on Friday on disappointment over the price paid for the stake.

A consortium including Singapore-based car retailer Cycle & Carriage has won bidding for around 40 percent of Astra with an offer of 3,700 rupiah per shares, or below the market's expectations.

"Fundamentally, Astra is still traded at an attractive price with P/E 7.9 times of 2000 prospective earnings," said an analyst with Trimegah Securities.

But some dealers said buying interest in Astra was also fuelled by the fact that Bhakti Investama, an investment fund linked to international financier George Soros, was part of the consortium that bought the stake.

Bhakti was the morning's most active share, and was volatile. After initially climbing 25 rupiah it changed course and closed down 50 rupiah at 1,175 on 26.5 million shares traded.

Dealers said other stocks linked to Soros or Bhakti benefitted from the Astra news, including cigarette maker Bentoel International which gained 50 rupiah to 9,000.

Second-line automotive parts maker Selamat Sempurna was up 50 rupiah at 1,250 on plans to expand its business and to carry out a stock split.-Reuters