Jakarta index little changed; Unilever up

Jakarta index little changed; Unilever up

Bloomberg, Jakarta

Indonesia's key stock benchmark closed little changed. PT
Unilever Indonesia had its biggest advance in two months after
posting its fastest quarterly profit growth this year.

Lenders such as PT Bank Central Asia and PT Bank Mandiri
declined on concern the nation's central bank will keep raising
interest rates to stem inflation.

The Jakarta Composite Index rose 0.003 point to close at
1,062.18. It earlier climbed as much as 0.1 percent and dropped
as much as 0.7 percent.

Declining stocks led gainers 45 to 37.

Unilever Indonesia, the local unit of the world's biggest
maker of detergents and shampoo, jumped Rp 175, or 4.3 percent,
to Rp 4,275, its biggest gain since Aug. 19.

Profit in the quarter ended Sept. 30 rose 21 percent to Rp 394
billion (US$40 million) from Rp 326 billion a year earlier.

Sales increased 27 percent to Rp 2.72 trillion.

"The third-quarter result was quite an improvement from the
first half," said Katarina Setiawan, an analyst at Kim Eng
Securities, who has a "long-term buy" rating on the stock.

"The management has been successful in keeping up growth."

Bank Central Asia, the country's second-largest lender by
assets, slid Rp 25, or 0.8 percent, to Rp 3,325.

Mandiri, the largest, declined Rp 20, or 1.5 percent, to Rp
1,320.

Bank Indonesia, the nation' central bank, on Oct. 24 raised
its inflation forecast for this year to 14 percent from an
earlier estimate of 12 percent because of a government decision
to increase fuel prices earlier this month.

It said it may boost interest rates further after raising its
key benchmark rate a full point to 11 percent on Oct. 4, the
fourth increase in nine weeks.

"With rising interest rates, stock markets don't offer
attractive returns," said Mulia Santoso, research manager at the
pension fund of PT Bank Negara Indonesia in Jakarta.

"We are now avoiding banking and property" stocks.