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."