Index falls; Gudang Garam, Bank Mandiri slump
Index falls; Gudang Garam, Bank Mandiri slump
Bloomberg, Jakarta
Indonesia's key stock index fell, led by consumer-related shares
such as PT Indofood Sukses Makmur and PT Gudang Garam, after the
government said it might raise its budget deficit forecast this
year because of higher fuel costs.
"The forecast of a higher deficit, though expected as oil
prices have risen, adds negative stock sentiment," said Baradita
Katoppo, head of research at Kim Eng Securities in Jakarta.
The Jakarta Composite Index fell 5.24, or 0.5 percent, to
1105.98 at the 4 p.m. local time close. Declining stocks led
gainers 90 to 39.
The government may raise its budget deficit forecast for 2005
to 1 percent of gross domestic product because of higher oil
prices, Coordinating Minister for the Economy Aburizal Bakrie
said on Monday.
Earlier budget forecasts targeted a deficit equivalent to 0.8
percent of gross domestic product, based on an estimate of $35 a
barrel for oil, he said.
Oil prices rose to a record $58.28 a barrel on April 4, making
it more expensive for the government, which subsidizes fuel to
make it affordable to the nation's 238 million people.
Gudang Garam, the country's biggest cigarette maker, fell Rp
400, or 2.5 percent, to Rp 15,800. Indofood, the world's biggest
maker of instant noodles, lost Rp 10, or 0.8 percent, to Rp
1,190. A higher deficit may put pressure on interest rates to
climb, damping consumer spending.
Lenders declined on concerns Bank Indonesia may raise interest
rates, damping loan demand. Inflation accelerated to 8.81 percent
in March, the fastest in 26 months, the central statistics bureau
said earlier this month.
PT Bank Central Asia, the second-biggest lender by assets,
slid Rp 25, or 0.7 percent, to Rp 3,400. PT Bank Mandiri, the
biggest lender, declined Rp 20, or 1.2 percent, to Rp 1,720.
"There are concerns that interest rates will keep on rising on
the higher inflation rate," said Alvin Pattisahusiwa, who helps
manage the equivalent of $316 million at Fortis Investments in
Jakarta.
Crude oil for May delivery fell for a sixth day, dropping 1
percent to $52.80 a barrel on the New York Mercantile Exchange at
9:24 a.m. London time. That's a decline of 9.4 percent from a
record $58.28 a week ago.
PT Medco Energi International, the country's biggest publicly
traded oil company, declined Rp 75, or 2.4 percent, to Rp 3,100.
PT Energi Mega Persada, the exchange's No. 2 oil company, lost Rp
30, or 3.9 percent, to Rp 740.
PT Bumi Resources, Indonesia's biggest exporter of coal, an
alternative fuel to oil, slipped Rp 20, or 2.5 percent, to Rp
790.
Nickel for delivery in three months on the London Metal
Exchange fell for a second day on April 8, declining 0.6 percent
to $16,100 a metric ton. The contract traded at $16,200 a ton at
9:50 a.m. London time.
PT International Nickel Indonesia, the local unit of the
world's second-biggest nickel-mining company, Inco Ltd., fell Rp
200, or 1.3 percent, to Rp 15,100. PT Aneka Tambang, a gold and
nickel miner, slid Rp 25, or 1 percent, to Rp 2,400.
PT Pelayaran Tempuran Emas, the smallest shipping company on
the Jakarta Stock Exchange by value, rose Rp 100, or 9.4 percent,
to a record Rp 1,160. The shares jumped 29 percent on April 8
after Danareksa Sekuritas said the fair value of the shares is Rp
1,675 each.
PT Sumalindo Lestari Jaya, a timber company, surged Rp 180, or
30 percent, to Rp 780, it highest closing price since Jan. 18,
2000.
Sumalindo had a net income of Rp 163.4 billion in 2004, its
first profit in six years, it said in a statement published in
Bisnis Indonesia newspaper. Sales may rise as much as 15 percent
this year, Bisnis reported Monday, citing a director at
Sumalindo.
"The rebound in net income last year was significant," said
Mardesiana, an analyst at PT Kresna Graha Sekurindo in Jakarta.
"The result was very good, and the outlook is also promising."