Stock index gains; Astra, SG advance

Stock index gains; Astra, SG advance

Bloomberg, Jakarta

Key stock index gained on Tuesday for the second day in three. PT
Astra International, the nation's biggest auto retailer, rose on
a report it has formed a financing venture with Toyota Motor
Corp.

Consumer-related companies such as PT Unilever Indonesia fell
on concern sales in the fourth quarter will drop after the
government raised fuel prices earlier this month.

The Jakarta Composite Index added 5.78, or 0.5 percent, to
close at 1,095.87, after earlier declining as much as 0.3
percent.

Gainers and losers were evenly matched.

Astra International, the biggest distributor of cars and
motorcycles, rose Rp 150, or 1.6 percent, to Rp 9,650.

Unilever, the biggest maker of food and soap, dropped Rp 100,
or 2.3 percent, to Rp 4,350.

The government on Oct. 1 almost tripled retail kerosene
prices, doubled auto diesel tariffs and raised gasoline prices by
88 percent to cut fuel subsidies.

"Consumer purchasing power has dropped after the recent fuel
price increases," said Satrio Utomo, an analyst at PT Trimegah
Securities in Jakarta.

"It will not be a good, fun Eid al-Fitr holiday."

Indonesia, where about 85 percent of the 238 million
population is Muslim, will celebrate Eid al-Fitr in early
November to mark the end of the holy month of Ramadhan.

Muslims typically travel to their hometowns for an annual
pilgrimage marked by meals and acts of charity, boosting consumer
sales.

PT Gudang Garam, Indonesia's biggest cigarette maker, slipped
Rp 200, or 1.9 percent, to Rp 10,200.

PT H.M. Sampoerna, the third-biggest, dropped Rp 250, or 3
percent, to Rp 8,200.

"The government has just hiked fuel prices, which will cut
further into purchasing power," Chandra Pasaribu, an analyst at
PT Danareksa Sekuritas, wrote in a note to clients on Tuesday.

"Coupled with the impact of the fasting month of Ramadhan
means the fourth-quarter is likely to be weak" for cigarette
makers.

PT Perusahaan Gas Negara, the state-controlled gas
distributor, lost Rp 100, or 1.8 percent, to Rp 5,500. Perusahaan
Gas on Oct. 15 raised the price of gas and transmission fees for
industries by 15 percent to $4.50 per million British thermal
unit to cope with rising costs after the government raised fuel
prices.

Elsewhere, PT Semen Gresik, Indonesia's biggest cement maker
by volume, jumped Rp 350, or 2 percent, to Rp 18,100. Sales rose
9.8 percent in September from a year earlier, the company said on
Monday.