Indonesia's stock index rises to record, led by Semen Gresik
Indonesia's stock index rises to record, led by Semen Gresik
Bloomberg
Jakarta
Indonesia's stock index rose to a record for the third day
this week. PT Semen Gresik and PT Indocement Tunggal Prakarsa
gained on expectations demand for cement will accelerate next
year.
The Jakarta Composite Index added 8.969, or 1 percent, to
890.365 at the 4 p.m. local time close. The index has closed at
records for the past three days. About seven stocks gained for
every five that fell.
Gresik, the biggest cement maker by sales, surged Rp 700, or
6.2 percent, to Rp 12,000 on expectations of higher profit
following a news report that the company expects demand for the
building material to accelerate next year.
Rival PT Indocement Tunggal Prakarsa jumped Rp 125, or 6.3
percent, to Rp 2,100.
Gresik plans to halt exports of cement next year to meet
rising domestic demand that is expected to grow in excess of 10
percent, faster than the 10 percent rise estimated this year.
Gresik said earlier it sells cement in the domestic market at a
higher price than its exports.
About 1.34 billion shares worth Rp 1.23 trillion (US$135
million) changed hands, 71 percent more than the six-month daily
average of Rp 717 billion.
The following stocks also rose or fell.
Stock symbols are in parentheses after company names.
PT Tambang Batubara Bukit Asam, a state-controlled coal miner,
gained Rp 125, or 14 percent, to Rp 1,050. Danareksa Sekuritas
raised forecasts on the company's earnings for 2004 by 6.9
percent to Rp 324.1 billion and for 2005 by 8.5 percent to Rp
367.9 billion.
Danareksa also raised its 12-month target price for Bukit
Asam's shares to Rp 1,350 from Rp 1,250 in September, said
analyst Erwan Teguh in a note to clients.
The upgrade came after Bukit Asam reported last week net
income in the nine months ended Sept. 30 surged 71 percent,
helped by a 15 percent gain in sales.
PT Sari Husada, which produces milk and baby food, shed Rp 50,
or 2.5 percent, to Rp 1,950.
PT Mandiri Sekuritas cut its estimates for Sari Husada's 2004
earnings per share by 29 percent to Rp 108 and 2005 by 20 percent
to Rp 145.
The cut came after the company reported on Tuesday net income
in the nine months ended Sept. 30 fell 25 percent from the year-
earlier partly because of higher marketing expenses.
"The operating results were below expectations," said Mandiri
analyst Rani Sofjan in a note to clients dated on Wednesday. She
also cut the recommendation on Sari Husada's stock to "neutral"
from "buy."
PT Telekomunikasi Indonesia, or Telkom, Indonesia's biggest
telephone company, added Rp 150, or 3.3 percent, to Rp 4,725 on a
report its unit plans to test a new technology.
PT Telekomunikasi Selular, Telkom's cellular unit, plans to
test high-speed mobile-phone services in the first quarter next
year, Bisnis Indonesia reported, citing Bambang Riadhy Oemar, a
company official.
The so-called third-generation, or 3G, technology allows users
to view video clips on their phones. Cellular services
contributed about a third of Telkom's revenue in the nine months
to Sept. 30.