Stock index has biggest gain in Oct.; Astra shares rises<\/p>\n
Arijit Ghosh and Naila Firdausi, Bloomberg\/Jakarta<\/p>\n
Indonesia's key stock index had its biggest gain this month, led
\nby PT Astra International, the nation's biggest auto retailer,
\nafter the company reported a less-than-expected decline in car
\nsales.<\/p>\n
\"Astra has been underweight for a while,\" said Kennyarso
\nSoejatman, who helps manage about US$61 million at First State
\nInvestments in Jakarta. \"We are back to market weight.\"<\/p>\n
The Jakarta Composite Index gained 7.45, or 0.7 percent, to
\n1033.28 at the 4 p.m. close, its biggest gain since Oct. 31. The
\nmeasure earlier fell as much as 0.2 percent.<\/p>\n
Astra added Rp 250, or 3 percent, to Rp 8,700, its biggest
\ngain in more than a month. The company said it sold 19,723 units
\nlocally last month, down 15.6 percent from a year earlier.<\/p>\n
\"We were expecting Astra's October sales to decline to the
\n15,000 level, which would have been in line with the overall
\nmarket,\" Robert Adair, an analyst with CIMB-GK Research Pte, said
\nin a note to investors. The 15 percent decline \"was better than
\nexpected.\"<\/p>\n
Elsewhere, PT Semen Gresik, the biggest cement maker, and PT
\nIndocement Tunggal Prakarsa rose after Investor Daily Indonesia
\nsaid construction of two toll-roads in Jakarta and neighboring
\ncities will start next year, boosting demand for cement.<\/p>\n
Semen Gresik added Rp 650, or 3.5 percent, to Rp 19,150. PT
\nIndocement Tunggal advanced Rp 100, or 3.4 percent, to Rp 3,050.
\nThe first project includes building a toll road that will connect
\nthe Cinere area in south Jakarta and three neighboring cities,
\nthe newspaper reported, citing Hisnu Pawenang, head of the
\nIndonesian toll-road regulator.<\/p>\n
PT Bank Mandiri, the nation's largest lender by assets, rose
\nRp 30, or 2.7 percent, to Rp 1,140 as investors bet recent
\ndeclines were excessive. The stock's 14-day relative strength
\nmeasure, derived by averaging out daily gains and losses, had a
\nreading of 16.4 on Wednesday, lower than 30, which indicates to
\nsome investors that the stock is poised to gain.<\/p>\n
PT Medco Energi Internasional, the country's biggest publicly
\ntraded oil company, added Rp 25, or 0.8 percent, to Rp 3,125.
\nCrude oil for December delivery rose 1.6 percent to $57.88 a
\nbarrel on Wednesday in New York, rebounding from the lowest in
\nfour months as the U.S. government reported an unexpected decline
\nin supplies. The contract was recently at $57.78 in after-hours
\nelectronic trading.<\/p>\n
PT International Nickel, the Indonesian unit of the world's
\nsecond largest nickel miner, gained Rp 350, or 2 percent, to Rp
\n11,850. \"The stock has fallen 25 percent since October and has
\nbreached our 12,000 target price,\" Michael Chambers, head of
\nIndonesian research at CLSA Asia-Pacific Markets, wrote in a note
\nto investors on Thursday. \"It now looks well priced.\"<\/p>\n
PT Mustika Ratu, a cosmetics maker, fell Rp 15, or 5.5
\npercent, to Rp 260. The company may miss its sales target of Rp
\n350 billion (US$34.9 million) this year as competition increases
\nand consumer demand declines after the government raised retail
\nfuel prices in March and October, Bisnis Indonesia newspaper
\nreported, citing President Director Mooryati Soedibyo.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stock-index-has-biggest-gain-in-oct-astra-shares-rises-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}