BRI leads Jakarta stock gainers

BRI leads Jakarta stock gainers

Bloomberg, Jakarta

Indonesian stocks advanced after Standard & Poor's raised the
country's credit rating, citing declining debt and increased
stability in Southeast Asia's largest economy.

PT Bank Rakyat Indonesia led gains.

"The ratings upgrade lowers the risk premium for investing in
Indonesian assets," said Alvin Pattisahusiwa, who helps manage
the equivalent of US$322 million for Fortis Investments in
Jakarta.

"It also shows that the outlook for the Indonesian economy is
promising."

The Jakarta Composite Index rose for a second day, gaining
8.863, or 0.9 percent, to 985.182.

Stocks also rose after Indonesia's Coordinating Minister for
the Economy, Aburizal Bakrie, raised the forecast for 2004
economic growth to 5 percent from 4.8 percent.

S&P raised Indonesia's long-term foreign-currency debt rating
to B+ from B.

S&P said it "won't rule out an upgrade" of Indonesia's rating
within the next 12 months. Higher ratings may allow Indonesian
companies to cut costs in future borrowings.

Bank Rakyat Indonesia (BRI), the country's fourth-biggest
lender by assets, jumped Rp 100, or 3.8 percent, to Rp 2,725.

PT Astra International, biggest auto distributor, gained Rp
150, or 1.6 percent, to Rp 9,700.

PT H.M. Sampoerna, the No. 2 cigarette maker by value, rose Rp
100, or 1.5 percent, to Rp 6,600. PT Indonesian Satellite Corp.
(Indosat), the country's No. 2 phone companies, added Rp 50, or
0.9 percent, to Rp 5,550.

The two companies had their long-term foreign-currency debt
ratings raised a level by S&P to BB-.

PT Bank Danamon, the No. 5 lender by assets, gained Rp 100
rupiah, or 2.3 percent, to Rp 4,400.

PT Astra Agro Lestari, the biggest agricultural company by
value here, lost Rp 125, or 3.9 percent, to Rp 3,125 as lower
palm-oil prices raised concern profit may fall.

Palm-oil for March delivery on the Malaysian Derivatives
Exchange slid 0.4 percent to 1,390 ringgit ($366) a metric ton at
3:53 p.m. Kuala Lumpur time, the contract's second day of
decline.

PT Bank Inter-Pacific, the exchange's eighth smallest lender,
surged Rp 35, or 35 percent, to Rp 135.

"There's talk that the lender is planning to merge with
another bank that may boost its performance," said Muhammad Reza,
an analyst at Kuo Capital Raharja.

Kuo was the second- biggest net buyer of Inter-Pacific shares
today.

Drugmaker PT Kalbe Farma added Rp 25, or 4.8 percent, to Rp
550.

The government will cut import duties on 144 goods including
steel products and drugs, a Kompas reports said, citing Director
General of Customs and Excise Eddy Abdurahman.