Stock index gains; Gresik advances
Stock index gains; Gresik advances
Bloomberg, Jakarta
Indonesia's stock index rose for the first day in three. PT
Semen Gresik advanced to a four-month high on optimism that a new
head at the country's biggest cement maker may help end a four-
year dispute with Mexico's Cemex SA.
The Jakarta Composite Index added 7.92, or 0.7 percent, to
1127.82 at the 4 p.m. local time close. Gaining stocks led
declining ones 67 to 37, while 232 stocks were unchanged.
Semen Gresik, 51 percent owned by the government, gained Rp
350, or 1.9 percent, to 19,150, the highest since Feb. 24. The
company named Dwi Soetjipto, previously president director of
Gresik's unit in West Sumatra, as the new president director to
replace Satriyo.
Cement sales in Indonesia are rising as economic growth raises
consumer spending and boosts the construction. The company is
considering expansion plans as it and the government hope to
resolve a dispute with Cemex over its 25.5 percent
Soetjipto was appointed to head PT Semen Padang in May 2003,
replacing the previous management, who together with local
authorities in 2001 blocked the central government's attempt to
sell a controlling stake in the parent company to Cemex, the
world's third-biggest cement maker.
"Soetjipto is the choice made by the central government," said
Irvin Patmadiwiria, who helps manage US$157 million of Indonesian
assets at PT Batavia Prosperindo Aset Manajemen in Jakarta. "We
are sure he is a proponent of the government program" to settle
the dispute with Cemex.
The following stocks rose or fell. Stock symbols are in
parentheses after company names.
PT Aneka Tambang (ANTM IJ), an Indonesian gold and nickel
miner, slid Rp 25, or 1 percent, to 2,400. Gold for immediate
delivery fell 0.4 percent to $438.25 an ounce in London as of
8:42 a.m. The metal is down for a third day.
PT Bank Danamon (BDMN IJ), the nation's fifth-largest lender,
advanced Rp 100, or 2 percent, to 5,150.
Moody's Investors Service today raised its financial strength
rating to D-, the fifth-lowest rating, from E+. The rating
company said the bank's "positive economic solvency and earnings
recovery have positioned it at the current rating range."
` PT Ciputra Surya (CTRS IJ), an Indonesian property company
that develops houses, hotels, and shopping centers in the East
Java city of Surabaya, gained 20 rupiah, or 1.5 percent, to
1,380. The company will pay a 30 rupiah-a-share dividend this
year. That's higher than 25 rupiah the company paid last year.
NC Securities has initiated coverage of Ciputra Surya, with a
"buy" recommendation. The company is expected to report a 38
percent increase in marketing sales of Rp 1.3 trillion this year
from projects in East Java, the brokerage said in a report
yesterday.
PT H.M. Sampoerna (HMSP IJ), an Indonesian cigarette maker
bought by Philip Morris International last month, climbed Rp 50,
or 0.6 percent, to 8,250. Sampoerna, the nation's third- biggest
cigarette maker, said yesterday it will raise prices gradually to
maintain margins after a planned tax increase.
Sampoerna is the second company after PT Gudang Garam (GGRM
IJ), the nation's biggest cigarette maker, to increase prices
after the government said on June 8 retail cigarette prices will
be raised by 15 percent from July 1 to boost revenue from taxes.
Gudang Garam added Rp 100, or 0.8 percent, to 12,750.