BEI INDEX OPENS HIGHER ON BANK SHARE GAINS

Jakarta, June 15 (ANTARA) - The Composite Stock Price Index (IHSG) at the Indonesian Stock Exchange (BEI) here early Monday opened higher as the index was boosted by banking shares such as Bank BRI, Bank Danamon, and Bank BNI.

The BEI index went up 1.073 points or 0.08 percent to 2,089.270 and the LQ-45 index climbed 0.10 percent or 0.408 points to 405.863 points early Monday.

The stock market activity was not yet high, but investors tended to make speculative moves by buying banking shares as they were optimistic that banks would soon lower their credit interest rates, Alfiansyah, a stock broker of PT Sinarmas Securities, said .

Banks would in the near future provide credits in larger amount as the industry was boosted by the improved domestic economic growth, he said.

There were only five share transactions at the stock market opening, including Bank BRI shares which gained Rp100 to Rp6,400 per share, Bank Danamon shares which rose Rp25 to Rp4,925 per share, and Bank BNI shares which surged Rp10 to Rp1,750 per share.

Besides, state telecommunication company PT Telkom shares jumped Rp50 to Rp7,700 per share.

"We are optimistic that the BEI index in this morning trading session will climb again, as the sentiment factor is still positive," he said.

However, he believed the Indonesian stock rally would not be significant due to the fall in regional stocks such as at the Tokyo and Seoul bourses.

"We predict the share purchases will continue in the morning trading session and it will boost the BEI index to surge," he said.

Meanwhile, the rupiah tumbled against the US dollar in the Jakarta interbank spot market early Monday as investors continue to buy the greenback.

The Indonesian currency traded at Rp10,120-Rp10,135 per US dollar, down 50 points from Rp10,070-Rp10,085 at the market's close last weekend.