Stock index climbs for first day; Telkom Gains
Stock index climbs for first day; Telkom Gains
Naila Firdausi, Bloomberg/Jakarta
Indonesia's key stock index rose for the first day in six. PT Telekomunikasi Indonesia advanced after the nation's biggest telephone company said it's seeking a Hong Kong-based partner to bolster growth.
PT Astra International and PT Perusahaan Gas Negara climbed as some investors judged recent declines excessive.
The Jakarta Composite Index added 4.34, or 0.4 percent, to 1022.08 at the 4 p.m. local time close, halting a five-day, 4.6 percent loss. Rising stocks led decliners by 47 to 40.
Telekomunikasi, or Telkom, added Rp 100, or 2 percent, to Rp 5,075. The company wants a partner to expand its multimedia business, Chief Commissioner Tanri Abeng said yesterday. The shares also rose after the company said it plans to launch its Telkom-2 satellite on Nov. 17 after a delay because of a technical problem.
Astra, Asia's biggest auto retailer by value, rose Rp 150, or 1.8 percent, to Rp 8,450. The shares slumped 11 percent in the five days through yesterday after the central bank raised its key interest rate on Nov. 1. Astra sells most of its cars and motorcycles through loans.
Perusahaan Gas, a state-controlled gas distributor, rose Rp 100, or 1.9 percent, to Rp 5,400, its first gain in three days.
"I'm still optimistic about the prospect of growth in Indonesia," said Irvin Patmadiwiria, who helps manage the equivalent of US$35 million at PT Batavia Prosperindo Aset Manajemen in Jakarta. "Inflation will be lower" next year and will lead to lower interest rates.
Inflation reached a six-year high of 17.9 percent last month after the government raised fuel prices to cut subsidy costs.
PT Bank Central Asia, the country's second-biggest lender by assets, led banks higher as investors bet interest rates will decline next year, boosting demand for loans. The shares rose Rp 75, or 2.5 percent, to 3,100. PT Bank Rakyat Indonesia, the fourth-largest, added Rp 50, or 2.1 percent, to Rp 2,475.
The following stocks also rose or fell in Jakarta. Stock symbols are in parentheses after company names.
Nickel producers: Nickel for delivery in three months on the London Metal Exchange slid 0.2 percent to US$11,850 a metric ton at 8:55 a.m. London time, set to drop for a fourth day in five.
PT Aneka Tambang, the world's fifth-largest nickel producer, fell Rp 50, or 2 percent, to Rp 2,400. PT International Nickel Indonesia, the local unit of Canada's Inco Ltd., lost Rp 500, or 4.2 percent, to Rp 11,300. "The outlook for nickel miners is not attractive as the metal's price keeps declining," said Edwin Sinaga, senior equity manager at PT Kuo Capital Raharja in Jakarta.
PT Timah, the world's biggest tin producer, fell Rp 40, or 2.6 percent, to Rp 1,500, the lowest close since Aug. 29. Tin for delivery in three months fell 0.4 percent to $6,205 a metric ton yesterday on the London Metal Exchange. The contract traded at $6,200 a ton at 9:31 a.m. London time.