Key index falls, Mandiri leads declines<\/p>\n
Arijit Ghosh, Bloomberg\/Jakarta<\/p>\n
Indonesia's key stock index fell, snapping a 7.8 percent, eight-
\nday winning streak. PT Bank Mandiri led declines in lenders on
\nconcern a 20 percent rally in financial shares in the past month
\nhad been excessive.<\/p>\n
The Jakarta Composite Index fell 8.31, or 0.7 percent, to
\n1173.71 at the 4 p.m. close after declining as much as 1.4
\npercent. The eight-day winning steak was the longest in 10
\nmonths. Two shares fell for every one that rose in the index.<\/p>\n
An index that tracks financial stocks declined 1.2 percent on
\nWednesday, its biggest drop since Nov. 14, and was the biggest
\ncontributor to the benchmarks drop.<\/p>\n
Banks stocks have rallied in the past month after the central
\nbank raised its key interest rate, used as a reference for bill
\nsales, by a less-than-expected half-a-percentage point on Dec. 6
\nand said it may start to cut rates in the second half of next
\nyear.<\/p>\n
The gains in the banking sector in the past month have been \"a
\nbit too hasty,\" said Mulya Chandra, an analyst at PT Danareksa
\nSekuritas in Jakarta. \"Though we are optimistic about 2006 year-
\nend projects, there could be temporary down cycles in the near
\nterm.\"<\/p>\n
Bank Mandiri, Indonesia's biggest bank by assets, lost Rp 40,
\nor 2.4 percent, to Rp 1,620. The stock has climbed 35 percent in
\nthe past month. Its 14-day relative strength measure, derived by
\naveraging out daily gains and losses, had a reading of 81.4 on
\nTuesday, higher than 70 which indicates to some investors that
\nthe stock is poised to fall.<\/p>\n
PT Bank Central Asia, Indonesia's biggest bank by market
\nvalue, dropped Rp 100, or 2.9 percent, to Rp 3,400. PT Bank
\nRakyat Indonesia lost Rp 25, or 0.8 percent, to Rp 3,075.<\/p>\n
\"The corporates we are meeting, no one is telling us that it
\nwill be a great quarter,\" said Erwan Teguh, head of research at
\nPT Danareksa Sekuritas in Jakarta. We are telling investors \"not
\nto sell, but not to chase stocks either. Our market is not
\ncheap.\"<\/p>\n
PT Astra International, the nation's biggest car retailer,
\ngained Rp 300, or 2.9 percent, to Rp 10,600 after a minister said
\nthe government should delay a proposed tax increase on vehicles.
\nMinister of Industry Fahmi Idris wants the government to delay or
\nrevise a planned tax increase on vehicles, Bisnis Indonesia
\nreported, citing the minister.<\/p>\n
The government said last month it will raise taxes for buyers
\nof sedans with an engine size of 1.5 liters to 3 liters to boost
\nrevenue and reduce the budget deficit.<\/p>\n
PT Aneka Tambang (Antam), a mining company 65 percent owned by
\nthe government, plunged Rp 250, or 6.9 percent, to Rp 3,375. The
\ncompany is seeking investors to help develop its Cikotok gold
\nmine in Banten province, Koran Tempo reported, citing Tarjuki, a
\ncompany spokesman. Cikotok may be closed because of declining
\noutput, the report said.<\/p>\n
PT Astra Agro Lestari rose Rp 50, or 0.9 percent, to Rp 5,700.
\nIndonesia's biggest publicly traded agricultural company said its
\ncrude palm oil output rose 11.2 percent in the first 11 months of
\nthis year. Production of the edible oil rose to 776,761 metric
\ntons in the period ended Nov. 30, from 698,819 tons a year
\nearlier, the company said.<\/p>\n
PT Indofood Sukses Makmur rose Rp 20, or 2.1 percent, to Rp
\n960. The world's biggest instant noodle maker, aims to boost its
\nmarket share in Indonesia to more than 75 percent next year, said
\nTaufik Wiraatmadja, a company director.<\/p>",
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