Stock index falls to 7-week low; Astra declines<\/p>\n
Soraya Permatasari, Bloomberg\/Jakarta<\/p>\n
Indonesia's key stock index dropped to its lowest in seven weeks.
\nAuto retailer PT Astra International led declines after the
\ncompany said vehicle sales are slowing because of higher interest
\nrates.<\/p>\n
"Investors may wait a bit longer before deciding to buy Astra
\nagain, considering growth in car sales volume is still slowing,"
\nsaid Irvin Patmadiwiria, who helps manage the equivalent of US$35
\nmillion at PT Batavia Prosperindo Aset Manajemen in Jakarta.<\/p>\n
The Jakarta Composite Index shed 11.25, or 1.1 percent, to
\n1,017.73 at the 4 p.m. local time close, extending a four-day,
\n3.5 percent loss. The measure is at its lowest since Sept. 23.<\/p>\n
The central bank has raised its benchmark interest rate five
\ntimes since July, with a record 1.25 percentage point increase on
\nNov. 1, in order to curb inflation and bolster the rupiah.
\nInflation reached a six-year high last month after the government
\nraised fuel prices to cut subsidy costs.<\/p>\n
Astra, the nation's biggest auto seller, fell Rp 250, or 2.9
\npercent, to Rp 8,300. "Our car sales started to slow down in
\nAugust," said Prijono Sugiarto, vice chairman of the Association
\nof Indonesian Automotive Manufacturers and a director of Astra.
\n"Sales may slow down further in the fourth quarter."<\/p>\n
PT Bank Negara Indonesia, the nation's third-largest lender,
\nlost Rp 10, or 0.8 percent, to Rp 1,190. PT Bank Mandiri, the
\nlargest bank, fell Rp 60, or 4.8 percent, to Rp 1,200. Purchases
\nof vehicles in Indonesia are typically funded by loans.<\/p>\n
The economy probably grew 5.1 percent in the third quarter,
\naccording to the median forecast of seven economists in a
\nBloomberg survey. The expansion would be the slowest pace in a
\nyear as higher inflation and interest rates curbed consumer
\nspending, which accounts for more than 60 percent of gross
\ndomestic product.<\/p>\n
PT Bumi Resources, Indonesia's biggest coal exporter, fell Rp
\n20, or 2.6 percent, to Rp 750. The company's net profit in the
\nfirst nine months of this year was below expectations because of
\nhigher-than-expected financing costs in the third quarter,
\nMacquarie Securities said in a report on Monday.<\/p>\n
The company made some payments of loans at two of its units
\nahead of schedule, resulting in the higher costs, Ahmad Solihin,
\nan analyst at Macquarie, said in the report. Macquarie cut its
\nearnings estimate by 5 percent in 2005, largely reflecting the
\nhigher costs, he said.<\/p>\n
PT Telekomunikasi Indonesia, the nation's biggest phone
\ncompany, gained Rp 50, or 1 percent, to Rp 4,975. PT Danareksa
\nSekuritas maintained a buy recommendation on the stock in a
\nreport released on Monday after Telkom reported cellular revenues
\ngrew 29 percent in the first nine months of the year.<\/p>",
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