Stocks fall on rate concerns; BRI, Astra lead declines<\/p>\n
Bloomberg, Jakarta<\/p>\n
Indonesia's stock index dropped 2.2 percent on concern lending
\ncosts will climb after the yield on one-month Bank Indonesia
\nbills rose to a 14-month high.<\/p>\n
PT Bank Rakyat Indonesia, the nation's fourth-biggest lender,
\nand PT Astra International, the biggest automobile distributor,
\nled declines on concern higher borrowing rates will damp consumer
\nspending and demand for loans.<\/p>\n
The Jakarta Composite Index dropped 23.14 points to 1,047.80
\nat the 4 p.m. local time close, the lowest since Feb. 11. The
\nindex has slumped 4.4 percent since April 18. The yield on the
\ncentral bank's one-month Bank Indonesia bills, used as a
\nbenchmark for rates, rose on Thursday to the highest since
\nFebruary 2004.<\/p>\n
\"People expect interest rates will rise further,\" said Wiman
\nKastami, who helps manage the equivalent of $311 million at
\nFortis Investments in Jakarta.<\/p>\n
Bank Rakyat dropped Rp 125, or 4.4 percent, to Rp 2,725. Astra
\nInternational, the biggest automobile distributor, slid Rp 100,
\nor 0.9 percent, to Rp 10,800. Gaikindo, the nation's association
\nof carmakers, said last year that more than two-thirds of car
\npurchases are funded from loans.<\/p>\n
PT Telekomunikasi Indonesia, the nation's biggest telephone
\ncompany, slid Rp 50, or 1.1 percent, to Rp 4,375 on concern a
\nweaker currency will boost the cost of importing equipment and
\nservicing dollar-debt. The company had $853 million of dollar
\ndebt as of September, and imports most of its equipment.<\/p>\n
The rupiah fell 0.9 percent to 9,660 against the dollar as of
\n3:40 p.m. local time. The currency earlier dropped to 9,668
\nagainst the dollar, the lowest since April 10, 2002.<\/p>\n
The market was closed on Friday for the commemoration of
\nProphet Muhammad's birthday.<\/p>\n
PT Aneka Tambang, an Indonesian gold and nickel miner, lost Rp
\n50, or 2.2 percent, to Rp 2,225. Aneka cut its scheduled
\nferronickel production for 2005 by 27 percent to 7,400 metric
\ntons, compared with a previous target of 10,150 tons, after
\ntechnical problems at a smelter. The shutdown of the company's
\nferronickel smelter may last as long as six months, Aneka Tambang
\nsaid Wednesday.<\/p>\n
PT Bank Mandiri lost Rp 70, or 4.2 percent, to Rp 1,590. The
\nIndonesian Attorney General's office said loans it's
\ninvestigating at PT Bank Mandiri, the nation's largest lender,
\nmay exceed the Rp 1 trillion (US$103 million) it estimated
\nearlier.<\/p>\n
Bank Mandiri spokeswoman Christiana Damanik declined to
\ncomment beyond saying the lender would cooperate with the
\ninvestigation.<\/p>\n
PT International Nickel Indonesia, the local unit of Canada's
\nInco Ltd., fell Rp 350, or 2.6 percent, to Rp 13,250, the lowest
\nsince Feb. 16. First-quarter profit dropped 31 percent to $50.9
\nmillion, from $73.4 million the year before, the company said in
\na faxed statement in Jakarta released after the market closed on
\nWednesday.<\/p>",
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