Stock index rises to 17-week high<\/p>\n
Soraya Permatasari, Bloomberg\/Jakarta<\/p>\n
Indonesia's key stock index rose to its highest in 17 weeks for a
\nthird day. PT Aneka Tambang (Antam) jumped to a record after
\nMerrill Lynch & Co. raised its earnings forecasts for the miner
\non higher gold price estimates.<\/p>\n
PT Telekomunikasi Indonesia (Telkom) and PT Indofood Sukses
\nMakmur advanced after the rupiah climbed to a five-month high,
\nraising optimism import costs of companies will drop.<\/p>\n
The Jakarta Composite Index added 1.749, or 0.2 percent, to
\n1160.07 at the 4 p.m. local time close, the highest since Aug.
\n11. The index gained 3.6 percent this week, its fourth weekly
\nincrease.<\/p>\n
Antam jumped Rp 250, or 8.7 percent, to Rp 3,125, its highest,
\nafter Merrill Lynch raised its 2006 earnings forecast for the
\ncompany by 9 percent to Rp 759.7 a share, and 35 percent to Rp
\n649.2 a share for 2007.<\/p>\n
"Merrill Lynch's global mining team has raised its gold price
\nforecasts by 19 percent for 2006 and by 18 percent for 2007,"
\nMerrill's report said on Wednesday. Gold accounts for about a
\nfifth of Antam's total revenue, the report said.<\/p>\n
Merrill left this year's forecast of Rp 489.14 a share
\nunchanged. It set a 12-month share price target of Rp 3,650, 17
\npercent higher than Friday's prices, and the stock a "buy."<\/p>\n
Telkom rose Rp 50, or 0.9 percent, to Rp 5,850. Telkom and its
\nbiggest cellular unit PT Telekomunikasi Selular (Telkomsel) said
\nearlier this year they plan to spend more than US$1 billion
\ncombined next year to expand coverage in the nation's 33
\nprovinces. Most of the investments will be in U.S. dollars.<\/p>\n
"The rupiah's strong gain is boosting sentiment, making
\nIndonesian assets more attractive," said Adrian Rusmana, head of
\nresearch at BNI Securities in Jakarta.<\/p>\n
Indofood, the world's biggest instant-noodle maker, gained Rp
\n20, or 2.2 percent, to Rp 940. About 60 percent of Indofood's
\ncosts are linked to the dollar.<\/p>\n
The rupiah rose 0.4 percent to 9,696 against the dollar as of
\n4:03 p.m. Jakarta time, its strongest since June 27.<\/p>\n
Banks advanced after the central bank said on Thursday it may
\nlower interest rates by the middle of next year as inflation is
\nexpected to slow.<\/p>\n
PT Bank Internasional Indonesia, the nation's sixth-biggest
\nbank, added Rp 10, or 6.9 percent, to Rp 155. PT Bank Permata,
\npartly owned by Standard Chartered Plc, rose Rp 10, or 1.5
\npercent, to Rp 670. PT Bank Lippo rose Rp 30, or 2 percent, to Rp
\n1,570. Lower rates may boost demand for loans and help cut non
\nperforming loans at banks.<\/p>\n
PT Astra Agro Lestari, Indonesia's biggest publicly traded
\nplantation company, fell Rp 250, or 4.3 percent, to Rp 5,600
\nafter Merrill put out a "sell" rating on the stock. The company's
\nshares are over-valued given slowing output growth, the broker
\nsaid in the report.<\/p>\n
PT Astra International gained Rp 300, or 3 percent, to Rp
\n10,300 after Kompas newspaper reported that the government may
\nrevise down the luxury tax on vehicles to help the local auto
\nindustry, citing Industry Ministry Fahmi Idris.<\/p>\n
PT Bank Negara Indonesia fell Rp 10, or 0.7 percent, to Rp
\n1,370. The third-largest Indonesian lender's profit this year may
\nfall 35 percent to Rp 2 trillion because of the increase in
\ninterest rates and inflation, Bisnis Indonesia reported.<\/p>",
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