June 30, 2010

The Jakarta Composite Index rebounded from a sharp decline in early trade to post a solid gain on Wednesday, outperforming most regional markets, while the rupiah capped five quarters of advances against the dollar.

The JCI gained 20.31 points, or 0.7 percent, to close at 2,913.68. Some 2.9 billion shares worth Rp 2.64 trillion ($290 million) changed hands. Gainers outnumbered decliners by 132 to 66.

The MSCI Asia-Pacific Index of regional shares dropped for a second day. Hong Kong’s Hang Seng index fell 0.59 percent and Japan’s benchmark Nikkei 225 dropped 1.96 percent. This followed declines of about 3 percent in the major US indexes on Tuesday.

The JCI traded as low as 2,844, a decline of 1.7 percent from the previous close, before selective buying in banking and mining shares drove the benchmark to a gain.

Among market leaders, PT Bank Central Asia gained 2.6 percent, while PT Bank Mandiri, the nation’s biggest lender by assets, advanced 1.7 percent.

PT Adaro Energy, the country’s No. 2 coal producer, gained 1.percent, while PT Bumi Resources, the sector leader, rose 0.5 percent.

Meanwhile, the rupiah edged higher on Wednesday, trading at 9,068 against the dollar as of 3:42 p.m., marking its longest run of quarterly gains in at least 18 years, as Indonesia’s improving economy spurred demand for the nation’s stocks and bonds.

“The rupiah has held up despite the turmoil in the global markets,” said Ho Woei Chen, a regional economist at United Overseas Bank in Singapore. “The economy is resilient as it is mostly domestic demand driven. Even during the global financial crisis last year, there weren’t any sharp drops in GDP, unlike other countries in Asia.”

The rupiah rose 0.3 percent during the second quarter, extending this year’s advance to 3.6 percent. Overseas investors have bought $871 million more Indonesian stocks than they sold this year, helping drive the JCI 15 percent higher.

Funds based abroad increased holdings of Indonesian debt by 46 percent to Rp 158.3 trillion this year as of June 24, according to the Finance Ministry’s Web site. The nation’s stocks and local-currency bonds lead gains in Asia’s 10 biggest economies this year.

Bloomberg

The Jakarta Post ,  Jakarta   | Tue, 02/16/2010 14:25 PM  |  Markets

Asian stocks were modestly higher Tuesday in holiday-thinned trade as investors awaited another top level European finance meeting on Greece’s debt crisis.

Markets in Shanghai, Hong Kong, Taiwan, Singapore and Malaysia were closed for Lunar New Year holidays. Wall Street was closed Monday for the Presidents Day holiday.

The euro, battered to a nine-month low last week as Greece’s problems undermined confidence in the common currency, gained against the dollar. Oil prices hovered above $74 a barrel.

Corporate earnings provided a positive glimmer Tuesday with Westpac, one of Australia’s largest banks, reporting that first quarter earnings grew by a third as bad loans dropped and the economy bounced back from the global financial meltdown.

But concerns about the fallout from Greece’s debt crunch remain close to the surface.

The 16 nations that use the euro have pledged to help Greece if it can’t repay its debts – but want Greece to make big spending cuts first.

On Tuesday, the finance ministers of the full 27-nation European Union meet and Greece is expected to be top of the agenda. Investors fear a Greek default could spark a wider European debt crisis, threatening governments ability to borrow money.

Japan’s Nikkei 225 stock average was up 38.07 points, or 0.4 percent, at 10,051.37 and South Korea’s Kospi gained 8.14, or 0.6 percent, to 1,602.78.

Australia’s benchmark climbed 0.4 percent and India’s Sensex added 0.3 percent. Elsewhere, Indonesia’s market was flat and New Zealand’s stock index advanced 0.9 percent.

In Europe on Monday, the FTSE 100 index of leading British shares closed up 25.02, or 0.5 percent, at 5,167.47 while Germany’s DAX rose 10.71, or 0.2 percent, at 5,511.10. The CAC-40 in France was 11.27, or 0.3 percent, higher at 3,610.34.

Oil prices hovered above $74 a barrel in Asia as investors looked for signs of improving global crude demand amid light holiday trading.

Benchmark crude for March delivery as up 21 cents at $74.34 in electronic trading on the New York Mercantile Exchange. With markets closed Monday in the U.S., the contract last settled on Friday, falling $1.15 to $74.13.

In currencies, the dollar fell to 89.92 yen from 90 yen. The euro gained to $1.3639 from $1.3597.