Irvan Tisnabudi & Bloomberg
The Jakarta Composite Index surged to a new record-high close on Friday as blue chip companies continued to post solid earnings reports and Greece appeared nearer to securing international aid to finance its budget deficit, analysts said.
The JCI climbed 44.39 points, or 1.5 percent, to 2,971.25.
The index rose 1.6 percent for the week, and finished the month of April with a 7 percent gain, its second-straight monthly advance.
Gainers outnumbered decliners 119 to 74, with some 6 billion shares worth Rp 5.4 trillion ($599.4 million) changing hands.
“Our index’s uptrend move is supported by positive financial reports,” said Mohammad Alfatih, an analyst at PT Samuel Sekuritas Indonesia.
“For the coming weeks, I think the JCI will maintain levels of 2,950 to 2,990. Keep an eye out for companies in the banking and commodities sectors,” Mohammad said, adding that investors should also watch out because many companies have hit their peak prices.
Meanwhile, the rupiah’s eight-month advance against the US dollar continued on speculation that Greece will secure international aid for its budget deficit supporting it on Friday.
The currency appreciated to 9,010 per dollar on Friday, from 9,095 at the end of March.
“The rupiah is typically a high-yielding currency. It does react to international risk events, though the reaction has become smaller with the stronger economy,” said Prakriti Sofat, an economist at Barclays Capital in Singapore.
Bank Indonesia announced on Friday that it would intervene in the currency markets to ensure the rupiah, the fastest rising major Asian currency in the last 12 months, does not rise above Rp 9,000 against the dollar.
On the JCI, PT Indofood Sukses Makmur rose 2 percent to close at Rp 3,900 after the company, Indonesia’s largest noodle and flour maker, said first-quarter income surged almost five-fold. The shares have risen 9.9 percent this year.
PT Telekomunikasi Indonesia gained the most in nearly four weeks after it said it plans to sell after reporting a 13 percent increase in first-quarter net profit.Telkom advanced 2 percent to Rp 7,850, its steepest increase since April 5.
Shares in PT Adaro Energy closed up 3.53 percent at Rp 2,200 on Friday despite the coal miner reporting that first-quarter net profit fell by 24.8 percent. It cited poor market conditions, a strong rupiah and lower than average selling prices.