Antam shares jump, due to higher gold price

Antam shares jump, due to higher gold price

Naila Firdausi, Bloomberg/Jakarta

Indonesia's stock index rose for a second day. PT Aneka Tambang (Antam) jumped to one-month high after gold climbed above US$500 an ounce for the first time in 22 years.

PT Astra International and PT Bank Rakyat Indonesia (BRI) declined as some investors bet the central bank will increase interest rates, damping demand for loans.

The Jakarta Composite Index added 1.22, or 0.1 percent, to 1082.28 at the 4 p.m. local time close. The measure rose 0.6 percent on Monday. Declining stocks led gainers 47 to 37.

Antam, an Indonesian nickel and gold miner, surged Rp 150, or 5.8 percent, to Rp 2,725, the highest close since Oct. 25.

Gold for immediate delivery rose as much as 0.8 percent to $502.70 an ounce in Asian trading, the highest since February 1983, as a weaker dollar and inflation fueled demand for bullion as an alternative investment. Spot gold traded at $498.89 at 3:45 p.m. Singapore time.

"Gold is still in a rising trend," said Danny Aditya, an analyst at PT Samuel Sekuritas Indonesia in Jakarta, who has a "buy" rating on the stock. "Antam's earnings will increase."

Astra, Indonesia's biggest retailer of cars and motorcycles, declined Rp 50, or 0.6 percent, to Rp 9,100. It sells most of its cars and motorcycles through loans. BRI, Indonesia's fourth- largest lender, slid Rp 50, or 1.7 percent, to Rp 2,950.

The Central Statistics Bureau will announce the country's November inflation figure on Dec. 1.

"The report will likely show that inflation remained high in November from a year ago," said Fitri Murniawati, an analyst at PT BNI Securities in Jakarta. "People expect the central bank will raise the benchmark rate again, which will hurt interest rate-sensitive sectors."

Inflation in Southeast Asia's largest economy surged to 17.9 percent in October from a year earlier after President Susilo Bambang Yudhoyono's government raised fuel prices at the start of the month to prevent fuel subsidies from draining the nation's coffers. That prompted Bank Indonesia to raise its benchmark interest rate to a three-year high of 12.25 percent.

Indonesia may postpone Rp 10 trillion (US$995 million) of infrastructure projects, including roads, until the first quarter of 2006, State Minister of National Development Planning Sri Mulyani Indrawati said.

PT Adhi Karya, Indonesia's state-controlled construction company, lost Rp 20, or 3.6 percent, to Rp 530. PT Semen Gresik, Indonesia's biggest cement maker, dropped Rp 650, or 3.5 percent, to Rp 18,050, the lowest close since Oct. 17.

"Investors earlier snapped up infrastructure stocks on the hopes of more project construction," said Haryajid Ramelan, who helps manage about $12 million at PT Recapital Asset Management in Jakarta. "This brings a negative outlook on the sector."

PT Bank Mandiri, Indonesia's largest lender by assets, climbed Rp 30, or 2.5 percent, to Rp 1,250. Bank Mandiri on Monday signed an agreement with Indonesia's State Loans and Auction Directorate-General to sell assets pledged by some of its debtors as the lender tries to cut its ratio of non-performing debt.

PT Gudang Garam, Indonesia's biggest maker of cigarettes, declined Rp 150, or 1.4 percent, to Rp 10,500. The company's cigarette volume, as measured by excise stamps purchased from the government, decreased 6 percent on the year in the January through October, Rani Sofjan, an analyst at PT Mandiri Sekuritas, wrote in a note to clients on Tuesday.

PT Kimia Farma, a state-run drugmaker and pharmacy operator, gained Rp 10, or 6.9 percent, to Rp 155, the highest close since Aug. 25. The stock jumped 12 percent on Monday after the government said it appointed Kimia to make the Tamiflu drug, which may be used to treat avian influenza.