Stocks advance, paced by Telkom, Astra on rupiah<\/p>\n
Bloomberg\/Jakarta<\/p>\n
Indonesian stocks rose, paced by PT Telekomunikasi Indonesia and
\nPT Astra International, after the rupiah gained for the first day
\nin three, easing concern the cost of imports and servicing
\ndollar-denominated debt will escalate.<\/p>\n
"The stronger rupiah really lifts sentiment on the market,"
\nsaid Christine Salim, head of research at PT Samuel Securities in
\nJakarta. "It also eases pressure that interest rates will rise."<\/p>\n
The Jakarta Composite Index rose for a second day, adding
\n12.9, or 1.2 percent, to 1123.46 at the 4 p.m. local time close.
\nAlmost two stocks gained for each one that fell.<\/p>\n
The rupiah climbed 0.4 percent to Rp 9,763 against the dollar
\nat 3:59 p.m. Jakarta time. It rose to Rp 9,721 a dollar earlier,
\nthe highest since June 30. A stronger currency reduces the cost
\nof importing components and machinery and makes repayments on
\nforeign-currency debt cheaper.<\/p>\n
Telekomunikasi, the nation's biggest telephone company,
\nclimbed 25 rupiah, or 0.5 percent, to 4,975. Telkom has about
\n$750 million in dollar-debt and imports most of its equipment. PT
\nIndocement Tunggal Prakarsa, which has about $495 million in debt
\nas of December, gained 100 rupiah, or 2.9 percent, to 3,550.<\/p>\n
Astra, the country's biggest automobile distributor, rose 250
\nrupiah, or 2.1 percent, to 12,450. The shares plunged 6.2 percent
\nlast week. Astra imports about half of its components.<\/p>\n
PT Bank Mandiri, the biggest lender by assets, gained Rp 20,
\nor 1.4 percent, to Rp 1,500. PT Bank Lippo, the ninth- largest
\nlender, jumped 120 rupiah, or 10 percent, to 1,320.<\/p>\n
The benchmark, up 0.4 percent at the midday break, extended
\ngains after the government said it plans to build a new oil
\nrefinery plant in Java, potentially reducing the nation's fuel
\nbill.<\/p>\n
"The index fell last week on budget deficit concerns because
\nhigh oil prices swell" government fuel subsidies, said Suherman
\nSantikno, head of research at PT IndoPremier Securities. "Higher
\ninvestment in the energy sector will boost oil output and cut our
\nimports and help budget." Indonesia imports a third of its fuel
\nproducts.<\/p>\n
The following stocks also rose or fell. Stock symbols are in
\nparentheses after company names.<\/p>\n
PT Bakrie & Brothers (BNBR IJ), a company with interests
\nranging from property to telecommunications, jumped Rp 15, or
\n12.5 percent, to 130. The stock, which is trading at 0.82 times
\nits sales and 0.6 times its book value, "is attractively priced,"
\nsaid Edwin Sinaga, senior sales manager for PT Kuo Capital
\nRaharja in Jakarta. "There is also expectation the company will
\nwin some infrastructure projects."<\/p>\n
The Jakarta Composite Index is trading at 1.3 time sales and
\n2.3 time book value, according to Bloomberg data. Kuo was the
\nsecond-biggest net buyer of Bakrie shares today.<\/p>\n
PT Indosat (ISAT IJ), Indonesia's second-biggest telephone
\ncompany, added Rp 150, or 2.8 percent, to 5,450 on expectations
\nthe company will report improved earnings in the second quarter.
\nDeutsche Bank AG estimates the company added 2.7 million new
\nsubscribers in the three months ended June 30, compared with
\n435,000 users in the first quarter.<\/p>\n
"We expect that the performance in the second quarter of 2005
\nwill improve as capacity constraints go and network quality
\nimproves," Deutsche Bank analyst Raymond Kosasih wrote in a note
\nto clients dated today. "We estimate second-quarter mobile
\nrevenue of 2.3 trillion rupiah, up 39 percent on year,"<\/p>\n
PT Ramayana Lestari Sentosa (RALS IJ), the nation's biggest
\nretailer by value, slid Rp 20, or 2.3 percent, to 870. Investors
\nwho buy the shares today are no longer entitled to a Rp 30 a
\nshare dividend the company will pay on July 27.<\/p>\n
PT Tambang Batubara Bukit Asam (PTBA IJ), a state-controlled
\nIndonesian coal miner, gained 30 rupiah, or 2 percent, to 1,530.
\nThe company is considering buying three coalminers in Kalimantan,
\nBisnis Indonesia reported, citing company President Ismet
\nHarmaini.<\/p>",
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