Key stock index gains; Astra, Berlian Laju share prices rise
Key stock index gains; Astra, Berlian Laju share prices rise
Naila Firdausi, Bloomberg/Jakarta
Indonesia's key stock index rose for the first day in three. PT Astra International gained as some investors judged a recent slide excessive compared with the auto retailer's earnings potential.
"The concern about slowing sales had already been priced- in," said Alvin Pattisahusiwa, who helps manage about US$300 million at Fortis Investments in Jakarta. "At current prices, it's relatively cheap."
PT Berlian Laju Tanker, the nation's biggest shipping company by value, climbed after Kim Eng Securities said profit would be higher than it expected.
The Jakarta Composite Index added 6.17, or 0.6 percent, to 1096.70 at the 4 p.m. local time close. About two stocks rose for each one that fell. The benchmark gained 0.2 percent this week, its third weekly climb.
Astra International, Indonesia's biggest automobile retailer, rose Rp 350, or 3.9 percent, to Rp 9,450. The stock dropped 7.1 percent in the six days through yesterday on concern higher fuel costs would reduce vehicle sales.
The government on Oct. 1 more than doubled auto diesel prices and raised gasoline charges by 88 percent to cut fuel subsidies. Astra's joint venture with Toyota Motor Corp., PT Toyota-Astra Motor, said sales of cars in Indonesia by all makers fell 2.9 percent in September from a year earlier month.
Astra is trading at 6.77 times estimated 2005 earnings, compared with the Jakarta Composite's 12.1 times.
Berlian Laju Tanker added Rp 30, or 3.3 percent, to 930. Kim Eng said the company's nine-month results would be in-line with Berlian's full-year forecasts for $250 million in sales and net income of $80 million.
The forecasts are higher than Kim Eng's estimates, Jakarta- based analyst Katarina Setiawan wrote in a note to clients today. "Management remains confident with its outlook in the next 12 months," Setiawan wrote. "Demand, particularly from chemicals, is expected to remain strong in 2006."
The following stocks also rose or fell. Stock symbols are in parentheses.
Palm-oil companies: Crude palm oil prices for delivery in October, November and December, rose 3.9 percent to $462.5 a metric ton yesterday in Rotterdam, the highest since May 17, 2004.
PT Astra Agro Lestari, Indonesia's biggest publicly traded agricultural company, added Rp 50, or 0.9 percent, to Rp 5,550. PT Perusahaan Perkebunan London Sumatra Indonesia, the second largest, climbed Rp 25, or 0.9 percent, to Rp 2,925.
PT Indosat, Indonesia's second-largest telephone company, lost Rp 50, or 0.9 percent, to Rp 5,600. PT Samuel Sekuritas cut the stock to "hold" from "buy," and said the fair value of the shares were Rp 6,000 each, analyst Bimo Haryo Pamungkas wrote in a note to clients dated yesterday.
Based on Oct. 13's closing price of "Rp 5,650, Indosat is trading at 13.1 times estimated 2006 earnings, higher than PT Telekomunikasi Indonesia's 9.4 times," Pamungkas wrote.
Telekomunikasi, the nation's biggest telephone company, rose Rp 100, or 1.9 percent, to 5,200.
PT International Nickel Indonesia, the local unit of Canada's Inco Ltd., slipped Rp 250, or 1.6 percent, to Rp 15,450. Nickel for delivery in three months dropped 3.4 percent to $12,200 a metric ton yesterday on the London Metal Exchange, the lowest since the Sept. 10, 2004, close. The contract was at $12,225 a ton at 10:03 a.m. London time.