JAKARTA (Thomson Financial) – Indonesian shares closed higher Thursday, tracking Wall Street’s gains with coal giant Bumi Resources and nickel miner Inco leading the rise.

Buying interest in Bumi was underpinned by expectations that the recent spike in oil prices will increase demand for coal.

Meanwhile, the rally in nickel prices on the London Metals Exchange spurred buying of Inco .

The rally was capped by profit-taking in selective stocks, including coal mining contractor Darma Henwa. Investors locked in part of the 69 percent rise the stock enjoyed on its first day of trade on Wednesday.

The composite index closed up 17.82 points or 0.8 percent to 2,378.82, off an intraday high of 2,381.08.

Volume was 5.71 billion shares worth 4.80 trillion rupiah.

Gainers led losers 115 to 67, while 78 stocks were unchanged.

The LQ45 index was up 4.0 points at 502.01.

The rupiah was trading at 9,140/9,150 to the US dollar, strengthening from 9,155/9,160 late Wednesday.

‘I think the market is on its way to break its historical record high, probably tomorrow,’ said Ryan Ariadi Suwarno, an analyst at Dongsuh Kolibindo.

The composite index hit its all-time high of 2,401.14 on July 24.

Bumi Resources gained 200 rupiah or 5.8 percent to 3,600 while rival Bukit Asam increased 150 or 2.3 percent to 6,650.

Inco rose 1,300 or 2.0 percent to 65,800, and rival Antam added 25 or 0.8 percent to 2,825.

Valbury Asia Securities analyst Krishna Dwi Setiawan said news about the government asking coal miners to prioritize supply for domestic consumption starting from 2010 played a part in boosting sentiment.

Among other gainers, Semen Gresik rose 100 or 1.9 percent to 5,500 after announcing a 9.5 percent year-on-year rise in net profit to 700 billion rupiah.

Kresna Graha analyst Mardesiana said Gresik results were in line with her expectations.

Index heavyweight Telkom also extended its rebound from yesterday, closing up 50 or 0.5 percent to 10,900.

Among the losers Darma Henwa dropped 35 or 6.2 percent to 530.

( 1 US dollar = 9,142 rupiah)

aloysius.bhui@thomson.com

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