Stock index falls; Matahari shares Drop, Astra gains
Stock index falls; Matahari shares Drop, Astra gains
Naila Firdausi, Bloomberg/Jakarta
Indonesian stocks fell for the first day in four. PT Matahari Putra Prima led declines among consumer stocks after inflation in November rose faster than some economists had forecast.
PT Astra International gained after its unit said motorcycle sales rose 35 percent in the first 11 months of the year.
The Jakarta Composite Index slid 0.27 point to 1096.37 at the 4 p.m. local time close. The measure gained 2.1 percent in the previous three days. Declining stocks led gainers 52 to 44.
Consumer prices in Southeast Asia's largest economy surged 18.4 percent from a year earlier after a 17.9 percent gain in October, Choiril Maksum, director at the Central Statistics Agency said at a briefing in Jakarta. That was more than the median 17.4 percent forecast in a Bloomberg survey of 11 economists and the highest since June 1999.
"This means consumer purchasing power is further eroded," said Michael Tjoajadi, who helps manage about US$56 million in stocks and bonds at PT Schroder Investment Indonesia in Jakarta. "It's bad for companies because consumption will slow. They may need to give discounts to lure consumers, and that will hurt margins."
Matahari, Indonesia's biggest retailer by sales, lost Rp 30, or 2.9 percent, to Rp 990. PT Gudang Garam, the country's biggest cigarette maker, declined Rp 100, or 0.9 percent, to Rp 10,850. PT Ramayana Lestari Sentosa, the second-biggest retailer, fell Rp 20, or 2.8 percent, to Rp 700.
PT Telekomunikasi Indonesia, the nation's biggest telephone company, slipped Rp 50, or 0.9 percent, to Rp 5,450. Telkom also fell as investors judged its 4.8 percent gain in the previous three days outstripped earnings potential.
Astra International, Indonesia's biggest auto distributor, gained Rp 150, or 1.7 percent, to Rp 9,250.
Motorcycle sales at Astra's unit in the January to November period rose to 2.49 million units, Johanes Hermawan, marketing director at unit PT Astra Honda Motor, told reporters in Jakarta today. The company had sold 1.85 million units in the same period last year.
"Astra has many solid businesses," said Bambang Setiadi, who helps manage about $150 million at PT Sinar Mas Sekuritas in Jakarta. "Valuation-wise, it's still attractive."
PT Bank Mandiri, Indonesia's biggest lender by assets, added Rp 20, or 1.6 percent, to Rp 1,310. The stock gained 3.2 percent on Wednesdayafter the lender said its non-performing-loans ratio declined in September from June.
The bank will set up a new company by 2006 to manage and sell its bad loans, part of a plan to cut its net non-performing loan ratio to below 5 percent by 2007, President Director Agus Martowardojo said on Wednesday.
PT Energi Mega Persada, Indonesia's second-biggest publicly traded oil and gas company, climbed Rp 30, or 4.1 percent, to Rp 760. Crude oil for January delivery on Wednesday rose 1.5 percent. The contract was at $57.05 a barrel, down 27 U.S.cents, in after-hours electronic trading at 8.59 a.m. London time.
"In a relatively high inflation environment, investors may see resource companies as a safe haven," said Irvin Patmadiwiria, who helps manage about $35 million at PT Batavia Prosperindo Aset Manajemen in Jakarta.
PT Perusahaan Gas Negara, a state-run gas distributor, lost Rp 400, or 5.6 percent, to Rp 6,750 on concern last month's 32 percent jump was excessive. The company said in November it will sell more gas and raise prices to industrial users next year and in 2007.
PT Semen Gresik, Indonesia's biggest cement maker, slipped Rp 450, or 2.5 percent, to Rp 17,450. The Indonesian Real Estate Developers Association reduced its forecast for new home sales this year to as low as 80,000 homes from a previous estimate of 100,000, Lukman Purnomosidi, chairman of the association, said on Wednesday.