Jakarta stocks index rises for 1st day in three
Jakarta stocks index rises for 1st day in three
Bloomberg, Jakarta
Indonesian stocks rose on Tuesday for the first day in three as the rupiah strengthened from a three-year low against the dollar. PT Indofood Sukses Makmur, the world's largest maker of instant noodles, paced gains.
PT Telekomunikasi Indonesia, the nation's biggest telephone company, climbed for the first day in eight after Bisnis Indonesia said the number of subscribers at its cellular unit grew 16 percent this year.
The Jakarta Composite Index jumped 11.89, or 1.2 percent, to 1031.77, halting a two-day, 4.8 percent slide.
"The rupiah's rebound helped stock sentiment," said Purboyo Purnomo, who helps manage US$826 million in stocks and bonds for PT Mandiri Manajemen Investasi in Jakarta.
Indofood rose Rp 40, or 3.9 percent, to Rp 1,060. About 60 percent of the company's production costs are linked to the U.S. dollar, the company said earlier.
Bank shares advanced after the central bank said it began selling a new type of three-day debt, with an interest rate of 3.625 percent, aimed at reducing liquidity in the markets.
"It's a good move," Purboyo said. "It may help slow the rate of inflation and stem a decline in the rupiah."
PT Bank Rakyat, Indonesia's fourth-largest lender by assets, rose Rp 75, or 2.8 percent, to Rp 2,725. PT Bank Central Asia, the No. 2, added Rp 50, or 1.6 percent, to Rp 3,200.
The following stocks also rose or fell in Jakarta. Stock symbols are in parentheses after company names.
PT International Nickel Indonesia, the local unit of the world's second-biggest nickel-mining company, Inco Ltd., rose Rp 100, or 0.8 percent, to Rp 13,150.
The company said it plans to spend $280 million over four years to raise capacity to 200 million pounds of nickel by 2009, from 160 million pounds this year.
PT Tambang Batubara Bukit Asam, an Indonesian state-controlled coal company, jumped Rp 80, or 6.2 percent, to Rp 1,380. The company will complete plans to acquire PT Multi Harapan Utama by the end of the month, Bisnis Indonesia reported, citing Bukit Asam's president, Ismet Harmaini.
PT Telekomunikasi Indonesia, the nation's biggest telephone company, added Rp 25, or 0.6 percent, to Rp 4,375, ending a seven-day, 7.9 percent slump.
Its cellular unit PT Telekomunikasi Selular has a total of 18.5 million subscribers this month, up from 16 million at the end of last year.
"Telkom should post good operating profit this year because of rising numbers of subscribers in the cellular business," Katarina Setiawan, an analyst at Kim Eng Securities in Jakarta, said.