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.