Indonesian shares higher on Wall Street rise, Q3 earnings hopes

Indonesian shares higher on Wall Street rise, Q3 earnings hopes - UPDATE

	Published : Wed, 24 Oct 2007 04:47 By : Agencies Print this Story

JAKARTA (Thomson Financial) - Indonesian shares were higher in early trade Wednesday supported by gains on Wall Street overnight and a pullback in the oil price.

New York's main futures contract, light sweet crude for delivery in December, shed 75 cents to close at 85.27 US dollars a barrel on Tuesday. It hit a record 90.07 dollars on Friday.

Hopes that key Indonesian companies are likely to report strong third-quarter results also helped underpin market sentiment.

Gains were led by big caps such as Telkom, Astra International and miners.

At 10.26 am, the composite index was up 34.71 points or 1.4 percent at 2,588.51.

Volume stood at 1.84 billion shares valued at 2.04 trillion rupiah.

The Indonesian rupiah was trading at 9,132/9,137 to the US dollar, compared to 9,140/9,145 late Tuesday.

'The market maintains its upside momentum supported by the positive earnings outlook of Indonesian companies as well as the inflow of global funds into emerging markets, which includes the Indonesian market,' Batavia Prosperindo analyst Santikno Suherman said.

'I think the appreciation of the rupiah, alongside other regional currencies, also helped in keeping the market's upward momentum,' he noted.

He said the market's rise also reflects market players' optimism about the earnings outlook of local companies for the third quarter and the full year.

Nickel and gold miner Antam rose 75 rupiah or 2.3 percent to 3,350, coal producer Bumi Resources added 75 rupiah or 1.7 percent to 4,525 and tin miner Timah rose 1,250 or 7.7 percent to 17,600.

Gas distributor Perusahaan Gas Negara rose 550 rupiah or 4 percent to 14,200 and carmaker Astra International rose 300 rupiah or 1.3 percent to 23,100.

Index heavyweight Telkom edged up 50 rupiah or 0.4 percent to 11,950 and Indosat also added 50 to 8,250.

(1 US dollar = 9,136 rupiah)

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Indonesian shares higher on Wall Street rise, Q3 earnings hopes - UPDATE