BEI INDEX OPENS HIGHER ON CIGARETTE SHARE GAINS

Jakarta, July 10 (ANTARA) - A surge in cigarette and property shares at the Indonesian Stock Exchange (BEI) here early Friday, made the Composite Stock Price Index (IHSG) climb slightly at the opening of the bourse's morning session.

The BEI index started 0.03 percent or 0.536 point higher at 2,084.510 and the LQ 45 index went up 0.01 percent or 0.049 point to 406.136.

The victory of the Susilo Bambang Yudhoyono (SBY)-Boediono pair in the recent presidential poll had a positive effect on the Indonesian stock market which had tumbled over the past few days, Alfiansya, a foreign currency analyst of PT Sinarmas Security, said here on Friday.

The positive effect caused the BEI index to slightly advance, he said.

He believed the BEI index would continue to strengthen, although there was uncertainty in regional bourses with the Hong Kong index rising but the Japan index falling.

It was because the Wall Street bourse only made relatively small gains, he said.

"We predict the BEI index will continue to surge especially in morning trading," he said.

The continued inflow of foreign capital was the main factor causing the Indonesian stock exchange to rally, he said.

Among shares which increased were Bukit Asam that added Rp350 to Rp11,600, cigarette company HM Sampoerna which gained Rp300 to Rp9,500, cigarette company Gudang Garam which advanced Rp200 to Rp12,650, and Astra Agro Lestari which rose Rp150 to Rp17,000.

Meanwhile, the rupiah sharply gained at the Jakarta interbank spot market here on Friday morning, to nearly the level of Rp10,000 per US dollar, as investors actively bought the local currency following the victory of the Susilo Bambang Yudhoyono (SBY)-Boediono pair in the recent presidential poll.

The Indonesian currency traded at Rp10,125-Rp10,135 per US dollar, up 65 points from Rp10,190-Rp10,200 at the market's close a day earlier.