Stocks climb for 5th day; Danamon, Antam advance<\/p>\n
Naila Firdausi, Bloomberg\/Jakarta<\/p>\n
Indonesian stocks advanced for a fifth day, the longest winning
\nstretch in six weeks. PT Bank Danamon and PT Astra International
\nrose after the central bank said it will try to avoid
\n"substantial" interest rate increases.<\/p>\n
PT International Nickel Indonesia and PT Aneka Tambang gained
\nafter nickel prices climbed to a one-month high.<\/p>\n
The Jakarta Composite Index added 7.47, or 0.7 percent, to
\n1062.46 at the 4 p.m. local time close, extending a four-day, 3.7
\npercent advance. The five-day winning streak matched a period
\nended Oct. 5. Rising stocks led decliners 57 to 47 today.<\/p>\n
Burhanuddin Abdullah, governor of Bank Indonesia, said on
\nMonday the central bank will try to avoid a "substantial" rate
\nincrease, even with inflationary pressures, because it doesn't
\nwant to hurt economic growth.<\/p>\n
"Investors are betting interest rates will not be raised as
\nmuch as was expected and that provides positive sentiment for
\nstocks, especially banks," said Bambang Setiadi, who helps manage
\nthe equivalent of US$150 million at PT Sinar Mas Sekuritas.<\/p>\n
Danamon, Indonesia's fifth-largest lender by assets, gained Rp
\n175, or 4.8 percent, to Rp 3,825 as concern of higher costs to
\npay depositors and of slowing demand for loans eased. PT Bank
\nMandiri, the largest, added Rp 10, 0.9 percent, to Rp 1,190.<\/p>\n
Astra, Indonesia's largest auto retailer that sells most of
\nits cars and motorcycles through loans, rose Rp 100, or 1.1
\npercent, to Rp 9,150.<\/p>\n
Stocks also rose after Indonesia's economic growth slowed less
\nthan some economists had estimated in the third quarter. The
\neconomy grew 5.3 percent in the three months ended Sept. 30, the
\nslowest in a year, as rising fuel costs, higher inflation and
\ninterest rates curbed consumer spending. Still, the pace of
\ngrowth beat a 5.1 percent median forecast in a Bloomberg survey
\nof 12 economists.<\/p>\n
Government spending increased 16.2 percent in the three months
\nended September from a year ago. Investment grew 9.2 percent and
\nhousehold consumption rose 4.4 percent.<\/p>\n
"We had expected the growth would slow; I think the rate came
\nout good," said Prayoga Triyono, head analyst at PT Henan
\nPutihrai in Jakarta.<\/p>\n
PT Telekomunikasi Indonesia, the country's biggest telephone
\ncompany, gained Rp 50, or 1 percent, to Rp 5,200.<\/p>\n
Nickel for delivery in three months on the London Metal
\nExchange jumped 3.4 percent to $12,350 a metric ton on Nov. 18,
\nthe highest close since Oct. 18. PT Aneka Tambang, a nickel and
\ngold miner 65 percent owned by the Indonesian government, gained
\nRp 75, or 3.1 percent, to Rp 2,500. PT International Nickel
\nIndonesia, the local unit of Canada's Inco Ltd., jumped Rp 600,
\nor 4.8 percent, to Rp 13,000.<\/p>\n
"The view is that the nickel price is unlikely to fall again
\nas demand seems to continue growing," said Suherman Santikno,
\nhead of research at PT Indo Premier Securities in Jakarta. "With
\nthe outlook of higher metal prices, Aneka and International
\nNickel are very attractively valued."<\/p>\n
PT Indocement Tunggal Prakarsa, Indonesia's second-largest
\ncement maker by sales, advanced Rp 75, or 2.4 percent, to Rp
\n3,175. The company may post a lower foreign currency loss this
\nyear, mainly due to a $150 million hedging arrangement, Bisnis
\nIndonesia newspaper said, citing Director Christian Kartawijaya.
\nIndocement had a Rp 498 billion currency loss last year,
\naccording to a previously published report.<\/p>",
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