Indonesia's Stock Index Gains; Excelcom Climbs in Trading Debut
Indonesia's Stock Index Gains; Excelcom Climbs in Trading Debut
Bloomberg/Jakarta
Jakarta Composite Index rose for the third day in four. Mobile
phone operator PT Excelcomindo Pratama jumped after its stock
began trading in the nation's biggest initial share sale in two
years.
"Indonesia's telecommunication sector is resilient, with low
penetration rates providing big potential growth," said Cholis
Baidowi, who helps manage the equivalent of US$479 million at PT
Trimegah Securities in Jakarta.
The Jakarta Composite jumped 20.41, or 2 percent, to 1048.30
at the 4 p.m. local time close. More than three stocks rose for
each one that fell.
Stocks also rose as concerns eased expected protests against
government plans to boost fuel prices will result in social
unrest. A protest rally in Jakarta on Thursday attracted
thousands of people.
Excelcomindo, Indonesia's third-largest mobile-phone operator
partly owned by Telekom Malaysia Bhd., surged Rp 300, or 15
percent, to Rp 2.300. The company raised Rp 2.86 trillion ($274
million) by selling a 20 percent stake at Rp 2,000 per share,
Director Rudiantara told reporters on Thursday.
Khazanah Nasional Bhd., Malaysia's state-owned investment arm,
bought a 16.8 percent stake, while Telekom Malaysia Bhd., has 25
percent, he said.
"The money raised will help Excelcom expand its business and
keep its" third ranking in Indonesia's phone market, said Adrian
Rusmana Setiamihardja, head of research at PT BNI Securities in
Jakarta. "The shares jumped because liquidity is small, with most
shares taken up by Khazanah and Telekom."
Mobile-phone users in Indonesia may more than double to about
79 million subscribers by 2007, according to Morgan Stanley. Less
than a quarter of the nation's 238 million people have telephone
access. Excelcomindo's initial offer was the country's biggest
since the government raised Rp 4.17 trillion selling 41 percent
of PT Bank Rakyat Indonesia in October 2003.
The benchmark, which closed 0.6 percent higher at the midday
break, extended its advance in the afternoon after a rally in
Jakarta to protest the government's plan to raise fuel prices
proceeded peacefully. The index lost 0.9 percent on Wednesday
while the rupiah fell to a three-week low on concerns plans to
increase fuel costs would lead to riots amongst the poor.
"Investors were concerned about unrest," said Alvin
Pattisahusiwa, who helps manage about $145 million at Fortis
Investments in Jakarta. "As the rally went peacefully and the
turn up was small" stock buying increased.
The rupiah appreciated 0.8 percent to 10,291 against the
dollar at 4:06 p.m., reversing earlier losses.