Indonesia's stock index rises to record, led by Semen Gresik<\/p>\n
Bloomberg
\nJakarta<\/p>\n
Indonesia's stock index rose to a record for the third day
\nthis week. PT Semen Gresik and PT Indocement Tunggal Prakarsa
\ngained on expectations demand for cement will accelerate next
\nyear.<\/p>\n
The Jakarta Composite Index added 8.969, or 1 percent, to
\n890.365 at the 4 p.m. local time close. The index has closed at
\nrecords for the past three days. About seven stocks gained for
\nevery five that fell.<\/p>\n
Gresik, the biggest cement maker by sales, surged Rp 700, or
\n6.2 percent, to Rp 12,000 on expectations of higher profit
\nfollowing a news report that the company expects demand for the
\nbuilding material to accelerate next year.<\/p>\n
Rival PT Indocement Tunggal Prakarsa jumped Rp 125, or 6.3
\npercent, to Rp 2,100.<\/p>\n
Gresik plans to halt exports of cement next year to meet
\nrising domestic demand that is expected to grow in excess of 10
\npercent, faster than the 10 percent rise estimated this year.
\nGresik said earlier it sells cement in the domestic market at a
\nhigher price than its exports.<\/p>\n
About 1.34 billion shares worth Rp 1.23 trillion (US$135
\nmillion) changed hands, 71 percent more than the six-month daily
\naverage of Rp 717 billion.<\/p>\n
The following stocks also rose or fell.<\/p>\n
Stock symbols are in parentheses after company names.<\/p>\n
PT Tambang Batubara Bukit Asam, a state-controlled coal miner,
\ngained Rp 125, or 14 percent, to Rp 1,050. Danareksa Sekuritas
\nraised forecasts on the company's earnings for 2004 by 6.9
\npercent to Rp 324.1 billion and for 2005 by 8.5 percent to Rp
\n367.9 billion.<\/p>\n
Danareksa also raised its 12-month target price for Bukit
\nAsam's shares to Rp 1,350 from Rp 1,250 in September, said
\nanalyst Erwan Teguh in a note to clients.<\/p>\n
The upgrade came after Bukit Asam reported last week net
\nincome in the nine months ended Sept. 30 surged 71 percent,
\nhelped by a 15 percent gain in sales.<\/p>\n
PT Sari Husada, which produces milk and baby food, shed Rp 50,
\nor 2.5 percent, to Rp 1,950.<\/p>\n
PT Mandiri Sekuritas cut its estimates for Sari Husada's 2004
\nearnings per share by 29 percent to Rp 108 and 2005 by 20 percent
\nto Rp 145.<\/p>\n
The cut came after the company reported on Tuesday net income
\nin the nine months ended Sept. 30 fell 25 percent from the year-
\nearlier partly because of higher marketing expenses.<\/p>\n
"The operating results were below expectations," said Mandiri
\nanalyst Rani Sofjan in a note to clients dated on Wednesday. She
\nalso cut the recommendation on Sari Husada's stock to "neutral"
\nfrom "buy."<\/p>\n
PT Telekomunikasi Indonesia, or Telkom, Indonesia's biggest
\ntelephone company, added Rp 150, or 3.3 percent, to Rp 4,725 on a
\nreport its unit plans to test a new technology.<\/p>\n
PT Telekomunikasi Selular, Telkom's cellular unit, plans to
\ntest high-speed mobile-phone services in the first quarter next
\nyear, Bisnis Indonesia reported, citing Bambang Riadhy Oemar, a
\ncompany official.<\/p>\n
The so-called third-generation, or 3G, technology allows users
\nto view video clips on their phones. Cellular services
\ncontributed about a third of Telkom's revenue in the nine months
\nto Sept. 30.<\/p>",
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