Key stock index declines; Aneka drops on nickel

Key stock index declines; Aneka drops on nickel

Naila Firdausi, Bloomberg/Jakarta

Indonesia's stock index declined for the first day in three. PT Aneka Tambang (Antam) fell after nickel prices slid to the lowest in more than two weeks.

The Jakarta Composite Index slipped 2.48, or 0.2 percent, to 1160.56 at the 4 p.m. local time close, ending a two-day, 1.7 percent gain. Declining stocks led gainers 55 to 41. The key index is set for a 16 percent jump this year, its fourth straight advance.

Antam, a gold and nickel miner 65 percent owned by the government, lost Rp 100, or 2.9 percent, to Rp 3,300.

Antam "trailed declines in nickel prices," said Arianto Reksoprodjo, head of research at PT Andalan Artha Advisindo Sekuritas in Jakarta. He rates Antam "hold," citing the "price is relatively expensive."

Nickel in London fell 3.5 percent to US$13,300 a metric ton on Tuesday, the lowest close since Dec. 2. The contract was at $13,225 a metric ton at 9:07 a.m. London time.

Elsewhere, PT Petrosea, a unit of Australia's Clough Ltd., jumped Rp 500, or 8.9 percent, to Rp 6,100, a record close.

Petrosea set aside Rp 80 billion to buy as much as 10 percent of its shares, the company said in a statement to the Jakarta Stock Exchange on Tuesday. The company will seek shareholders' approval at a meeting on Jan. 24.

"The news was behind the gain today and the stock may rise to as high as 6,500 rupiah," said M. Alfatih, an analyst at PT Sarijaya Permana Sekuritas in Jakarta. The brokerage was the biggest net buyer of Petrosea on Wednesday.

PT Gudang Garam, the biggest cigarette maker, jumped Rp 550, or 5 percent, to Rp 11,600. PT Namalatu Cakrawala Securities raised its recommendation on the stock to "long-term buy" from "hold," and set the fair value at Rp 12,350 a share, analyst Ben Santoso wrote in a report.

"As we expect cigarette demand to recover in 2007, we believe the stock remains 12 percent undervalued," Santoso wrote in the e-mailed report received on Wednesday.

PT Telekomunikasi Indonesia (Telkom), the nation's biggest telephone company, added Rp 50, or 0.8 percent, to Rp 6,050. The company on Wednesday obtained shareholders approval to spend as much as Rp 5.25 trillion to buy back as much as 5 percent of its equity.

PT Timah, the world's largest integrated tin refiner, lost Rp 30, or 1.6 percent, to Rp 1,810. Tin for delivery in three months in London dropped 3.7 percent to $6,550 a metric ton on Tuesday, the contract's biggest slide since June 22.