Indonesian stock index falls from record high
Indonesian stock index falls from record high
Bloomberg, Jakarta
Indonesia's benchmark stock index fell for the first day in 10, failing to extend the longest winning streak in more than two years. PT Telekomunikasi Indonesia led the decline on concern competition may reduce the company's profit.
The Jakarta Composite Index slipped 0.907 points, or 0.1 percent, to 1102.02, halting a nine-day, 6.4 percent gain and falling from a record on Wednesday.
The winning streak snapped on Thursday was the longest since the nine days ended Nov. 29, 2002.
Telekomunikasi, or Telkom, Indonesia's biggest phone company, fell Rp 75, or 1.6 percent, to Rp 4,575. The stock has fallen 5.2 percent this year after gaining 43 percent last year. Telkom has the biggest weighting in the index.
"Investors are selling bigger stocks like Telkom and Indosat, which are cutting prices to compete with each other," and seeking bigger gains from stocks with a smaller weighting in the benchmark, said Julius Sianipar, an analyst at Dhanawibawa Arthacemerlang in Jakarta.
PT Telekomunikasi Selular, Indonesia's biggest mobile-phone operator which is owned by Telkom, cut tariffs for a second time this year on Feb. 15 to compete with rivals PT Indosat and PT Excelcomindo Pratama.
PT Ramayana Lestari, Indonesia's second-biggest retailer by sales, rose Rp 10, or 1.3 percent, to Rp 790. The stock has gained 1.9 percent this year after falling 11 percent last year.
PT United Tractors, which is controlled by Indonesia's biggest auto distributor PT Astra International, added Rp 125, or 4.1 percent, to Rp 3,175. The stock has gained 40 percent this year. United Tractors makes tractors, mining tools, and other heavy machinery.
"Investors are turning to stocks like Ramayana, which lagged the bigger stocks last year, and United Tractors, which will benefit from the planned increase in government infrastructure spending this year," Sianipar said.
The government last month offered investors projects of toll roads, power plants and other infrastructure, valued at about US$22 billion. Indonesia has said it needs $150 billion to develop infrastructure in the country of 238 million people in the next five years.
The following stocks rose. Stock symbols are in parentheses after company names.
PT Astra International, the nation's biggest auto distributor, added Rp 500, or 4.4 percent, to Rp 11,750.
PT H.M. Sampoerna, Indonesia's second-biggest cigarette maker, gained 100 rupiah, or 1.2 percent, to 8,150 as the company plans to increase selling prices to distributors starting this week. The company will raise prices of its Dji Sam Soe, A-Mild, and Hijau brands by about 1 percent, Niken Rachmad, the company's spokeswoman, said in an interview last week.