Stock index rises; Unilever, BCA gain<\/p>\n
Naila Firdausi, Bloomberg\/Jakarta<\/p>\n
Indonesia's key stock index rose for a second day. PT Unilever
\nIndonesia gained after oil prices fell to a four-month low,
\nraising expectations the cost of plastic packaging will decline.
\nPlastic is a derivative of oil.<\/p>\n
PT Bank Central Asia (BCA) climbed after Credit Suisse First
\nBoston raised the lender to \"outperform,\" citing benefits from
\nhigher interest rates.<\/p>\n
The Jakarta Composite Index added 3.75, or 0.4 percent, to
\n1025.83 at the 4 p.m. local time close. Still, declining stocks
\nled gainers 52 to 34.<\/p>\n
Crude oil declined 1.2 percent to US$56.98 a barrel in New
\nYork on Tuesday, the lowest close since July 20, on expectations
\nU.S. stockpiles rose last week. Oil was recently at $56.78 in
\nafter-hours trade.<\/p>\n
Falling \"oil prices will lead to lower prices for packaging
\nand will benefit manufacturers like Unilever,\" said Fitri
\nMurniawati, an analyst at PT BNI Securities in Jakarta.<\/p>\n
Unilever, the country's biggest maker of detergents and
\nmargarine, rose Rp 100, or 2.4 percent, to Rp 4,300. PT Sari
\nHusada, which manufactures baby food, added Rp 100, or 2.9
\npercent, to Rp 3,500.<\/p>\n
BCA, the country's second-largest lender by assets, rose Rp
\n100, or 3.2 percent, to Rp 3,200. Credit Suisse raised the stock
\nto \"outperform\" from \"neutral,\" citing recent declines in the
\nshare price and expectations it will benefit from rising interest
\nrates, analyst Roger Lum wrote in a note to clients on Wednesday.
\nLum said 78 percent of the lender's interest-earning assets are
\nlinked to variable rates.<\/p>\n
Bank Indonesia, the nation's central bank, on Nov. 1 boosted
\nits key rate to the highest in almost three years after October
\ninflation accelerated at the fastest pace since June 1999. The
\ncentral bank said on Wednesday that inflation may stay above 10
\npercent until the end of the third quarter of 2006.<\/p>\n
PT Bank Mandiri, Indonesia's biggest lender by assets, fell Rp
\n70, or 5.9 percent, to Rp 1,110. \"Mandiri's non-performing loans
\nwill increase as interest rates rise,\" said Pang Tek Djen, an
\nanalyst at PT Sucorinvest Central Gani, in Jakarta. \"The lender
\nwill have to set aside more for provisions.\"<\/p>\n
PT Aneka Tambang, a gold and nickel miner, added Rp 25, or 1
\npercent, to Rp 2,425. Gold for immediate delivery in Asia rose as
\nmuch as 0.8 percent to $472.40 an ounce. It traded at $471.35 at
\n4:55 p.m. Sydney time.<\/p>\n
PT Astra Agro Lestari, Indonesia's biggest publicly traded
\nagricultural company, slipped Rp 50, or 0.9 percent, to Rp 5,300.<\/p>\n
Palm-oil for delivery in January on the Malaysian Derivatives
\nExchange fell 0.5 percent to 1,422 ringgit ($376) a metric ton on
\nTuesday, the lowest closing price for a most actively traded
\ncontract since Oct. 26. The contract traded at 1,413 ringgit a
\nton at 5:18 p.m. Kuala Lumpur time.<\/p>\n
PT Telekomunikasi Indonesia, the nation's biggest phone
\ncompany, lost Rp 25, or 0.5 percent, to Rp 5,050 on concern
\nearnings will fall. The company plans to reduce the tariff for
\ncalls made between Indonesian cities.<\/p>",
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