Indonesian shares rise in early trade in line with region

Indonesian shares rise in early trade in line with region - UPDATE

	Published : Mon, 26 Nov 2007 04:12 By : Agencies Print this Story

JAKARTA (Thomson Financial) - Indonesian shares were higher in early trade Monday with Friday's rally on Wall Street and a strong showing in regional markets lifting sentiment.

Key gainers include commodity, plantation and bank stocks.

'Investors were encouraged by the performance of regional markets, which have gained by an average of around 2.0 percent so far,' said Oos Rosady, a dealer with Mandiri Securities.

At 10.05 am (0305 GMT), the composite index was up 39.78 points or 1.5 percent at 2,624.13.

Investors are bullish on commodity stocks, including coal miners, nickel miners and crude palm oil (CPO) producers, because of the outlook for commodity prices, supported by high crude oil prices, Rosady said. Oil prices hovered near 99 US dollars in Asian trade Monday as traders continued to fret over tight supplies globally.

When commodity counters rallied, other big-caps became attractive again as they are regarded as laggards, especially after last week's sell-offs, Rosady said. The main index dropped 3.2 percent last week.

After such a strong opening, Rosady is now expecting the market to be volatile for the rest of the day because some investors will likely try to lock in gains quickly.

Coal producer Bumi Resources gained 200 rupiah or 4.3 percent at 4,850 rupiah and rival Bukit Asam added 550 rupiah or 5.3 percent at 10,850 rupiah.

Oil and gas company Medco Energi rose 250 rupiah or 4.6 percent to 5,650 rupiah.

CPO producer Astra Agro rose 850 rupiah or 3.9 percent to 22,800 rupiah.

Nickel miner Inco gained 4,350 rupiah or 4.5 percent at 99,800 rupiah and rival Antam increased 200 rupiah or 4.3 percent to 4,850 rupiah.

Index heavyweight Telkom rose 100 rupiah or 1.0 percent to 10,150 rupiah and auto company Astra International added 950 rupiah or 4.1 percent at 24,150 rupiah.

(1 US dollar = 9,380 rupiah)

aloysius.bhui@thomson.com

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Indonesian shares rise in early trade in line with region - UPDATE