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.