STOCKS NEWS INDONESIA-Index rebounds, state-owned firms lead
Indonesian shares rebounded on Wednesday, rising as much as 1.5 percent to 4,237.23 in early trading, boosted by blue chip stocks and state-owned enterprises.
The big caps index rose as much as 2.2 percent to 702.02, with state-owned firms leading the rally. Cement maker Semen Indonesia soared 8.4 percent to 13,500 rupiah. telecom provider Telkom Indonesia jumped 5.3 percent to 10,950 rupiah and lender Bank Rakyat Indonesia rose 2.9 percent to 7,050 rupiah.
Indonesia's state-owned enterprises minister confirmed on Tuesday that he had asked state firms to buy back shares directly from the market after the move was approved by the financial services regulator, known as OJK.
Indonesia's two main state pension funds, Jamsostek and Taspen, also said on Tuesday that they would increase their purchases of local stocks, aimed to rescue battered shares. The move helped reduce the Jakarta share index loss to 3.2 percent from 5.8.
Batavia Prosperindo Sekuritas cited similar intervention by the government in 2008 in a note on Wednesday. The steps included buybacks by state-owned banks, suspension of share trading, a bond stabilisation framework to lower yields and leeway to listed companies to buy back shares without going through extraordinary general meetings, the note said.
1046 (0346 GMT)
(Reporting by Andjarsari Paramaditha,; Editing by Prateek Chatterjee)
- WTO overcomes last minute hitch to reach its first global trade deal
- Colorado baker discriminated by denying gay couple wedding cake: judge
- Flights delayed as air pollution hits record in Shanghai
- Amish girl in Ohio will not be forced to resume chemo for cancer
- South Africa mourns Mandela, will bury him on December 15 |