Stock index gains; PGN, Cibinong up
Stock index gains; PGN, Cibinong up
Naila Firdausi, Bloomberg/Jakarta
Indonesia's key stock index rose to a 17-week high. PT Semen
Cibinong had its biggest gain in 11 months as the rupiah climbed
on expectations new economic ministers will be able to spur
growth and rein in inflation.
"There is optimism that the new people in office will be
capable and do well," said Kennyarso Soejatman, who helps manage
about US$55 million at First State Investments in Jakarta.
PT Perusahaan Gas Negara (PGN) rose after saying it is seeking
to raise $305 million to expand its gas distribution network.
The Jakarta Composite Index climbed 6.95, or 0.6 percent, to
1,158.32 at the 4 p.m. local time, the highest close since Aug.
11. Declining stocks led gainers 69 to 55.
The measure has gained 5.7 percent since President Susilo
Bambang Yudhoyono on Dec. 2 flagged a plan to change his cabinet.
The rupiah rose to as high as 9,770 against the dollar on
Thursday, the strongest since Aug. 11. It was at 9,776 a dollar
at 4:06 p.m. local time. A stronger local currency cuts the cost
of servicing foreign debt and importing materials.
Susilo on Wednesday swore in former finance minister Boediono
as his top economics minister. Boediono said the country must
boost efforts to prevent a decline in the rupiah and stem a surge
in inflation. Planning minister Sri Mulyani Indrawati moved to
the finance portfolio.
"People are betting that the worst is behind us," said First
State's Soejatman. "Interest rates and inflation are peaking. The
new cabinet is the catalyst."
Bank Indonesia on Dec. 6 raised a key interest rate by half a
percentage point to 12.75 percent, less than the 13.25 percent
median forecast of 10 economists in a Bloomberg survey.
Cibinong, Indonesia's No. 3 cement maker by sales with $487
million in long-term debt, jumped Rp 45, or 9.6 percent, to Rp
515, its biggest gain since a 9.8 percent surge on Jan. 4. PT
Kalbe Farma, the biggest drugmaker by sales that imports most of
its raw materials, added Rp 10, or 1.1 percent, to Rp 920.
PT Bank Rakyat Indonesia, the fourth-largest lender by assets,
rose Rp 75, or 2.5 percent, to Rp 3,075 as investors bet a
stronger rupiah will ease pressure on the central bank to raise
interest rates.
PT Bank Mandiri, the largest lender, jumped Rp 120, or 8.1
percent, to Rp 1,610. Credit Suisse First Boston on Wednesday
raised the stock to "outperform" from "neutral," citing an
improving outlook. Merrill Lynch & Co. on Wednesday raised the
stock to "buy" from "sell."
PT Bank Danamon, Indonesia's fifth-largest lender, lost Rp 50,
or 1.2 percent, to Rp 4,250 as some investors judged recent gains
had outstripped performance. The stock gained 7.5 percent in the
previous two sessions.
"Stocks prices have gone up significantly," said Adrian
Rusmana, head of research at PT BNI Securities in Jakarta.
PT Bumi Resources, the nation's biggest coal exporter, added
Rp 20, or 2.7 percent, to Rp 760.
PT Energi Mega Persada, Indonesia's second-biggest publicly
traded oil company, slipped Rp 30, or 4 percent, to Rp 720. Crude
oil for January delivery on the New York Mercantile Exchange on
Wednesday fell for the first day in six, sliding 1.2 percent to
$59.21 a barrel.
PT Medco Energi Internasional, the country's biggest publicly
traded oil company, gained Rp 75, or 2.2 percent, to Rp 3,525.
PT Perusahaan Gas Negara, the biggest gas distributor,
advanced Rp 200, or 2.9 percent, to Rp 7,000. The company may
borrow from lenders or sell debt to raise $225 million, President
Director Washington M.P. Simandjuntak said on Wednesday.