Jakarta stock index gains, Gudang Garam falls
Jakarta stock index gains, Gudang Garam falls
Naila Firdausi, Bloomberg, Jakarta
Indonesia's key stock index rose, led by PT Bank Central Asia and
PT Bank Danamon, on optimism the central bank will announce
regulations to boost lending.
PT Gudang Garam fell after industry figures showed the
company's excise stamp purchases, a measure of future production,
grew slower than other cigarette makers last year.
The Jakarta Composite Index added 3.54, or 0.4 percent, to
1024.89 at the 4 p.m. local time close. Losing stocks led gainers
73 to 46. The Jakarta Finance Index, which tracks 61 finance
stocks, accounted for 59 percent of the benchmark's gain.
The central bank said Jan. 14 after the market closed that it
will introduce new regulations to help banks increase their
lending to individual customers and companies.
"The main point of the new regulation will be to loosen the
legal lending limit rules," Bank Indonesia Governor Burhanuddin
Abdullah told reporters in Jakarta.
Bank Central Asia, or BCA, the No. 2 lender by assets, added
Rp 50, or 1.8 percent, to 2,875. PT Bank Negara Indonesia, the
No. 3 lender, rose Rp 20, or 1.2 percent, to 1,640. Bank Danamon,
the exchange's fifth-largest lender, gained Rp 25, or 0.6
percent, to 4,400.
The regulations are "expected to benefit the top-tier banks
such as BNI, Danamon and BCA," Andy Lesmana, an analyst at Bahana
Securities, said in a note to clients today.
The following stocks also fell or rose. Stock symbols are in
parentheses after company names.
Construction-related stocks: The government said the nation
may need to spend US$150 billion on roads and other
infrastructure in the next five years, excluding an estimated Rp
36 trillion ($3.94 billion) needed to rebuild part of Aceh
province, the region hardest hit by the Dec. 26 earthquake and
tsunami, Coordinating Minister for Economic Affairs Aburizal
Bakrie said in a statement.
PT Indocement Tunggal Prakarsa (INTP IJ), the No. 2 cement
maker by sales, rose Rp 25, or 0.8 percent, to 3,225. PT Adhi
Karya (ADHI IJ), which provides construction and property
development services, jumped Rp 50, or 6 percent, to 880.
"The forecast for infrastructure spending doubled an earlier
estimate," said Katarina Setiawan, deputy head of research at Kim
Eng Securities in Jakarta. "Cement makers and other
infrastructure-related companies will benefit from higher
spending."
Tobacco stocks: PT H.M. Sampoerna (HMSP IJ), the exchange's
No. 2 cigarette maker, bought 20 percent more in excise stamps
last year, while purchase by PT Gudang Garam (GGRM IJ), the
biggest cigarette maker, rose by 2 percent, said Ella Nusantoro,
an analyst at Bahana Securities, citing figures from the
cigarette industry association. Total purchase by all Indonesian
cigarette makers grew 10 percent last year.
"We still favor Sampoerna over Gudang Garam as Sampoerna will
continue to benefit from robust demand in" low tar, low nicotine
cigarettes," said Nusantoro in an e-mailed note.
Sampoerna added Rp 50, or 0.7 percent, to Rp60. Gudang Garam
dropped Rp 250, or 1.7 percent, to 14,200.
PT Astra International (ASII IJ), the biggest auto
distributor, jumped Rp 400, or 4 percent, to 10,400. The company
sold 217,593 sedans, vans and trucks in Indonesia last year,
compared with 147,074 vehicles in 2003, figures from the
Association of Indonesian Automotive Industries showed.
"Astra's earnings in 2004 may exceed our estimate, driven by
better-than-expected earnings from auto distribution," said Erwan
Teguh, head of research of Danareksa Sekuritas, in a note to
clients today. "The target price may likely be revised."