Stock index has biggest gain in Oct.; Astra shares rises

Stock index has biggest gain in Oct.; Astra shares rises

Arijit Ghosh and Naila Firdausi, Bloomberg/Jakarta

Indonesia's key stock index had its biggest gain this month, led
by PT Astra International, the nation's biggest auto retailer,
after the company reported a less-than-expected decline in car
sales.

"Astra has been underweight for a while," said Kennyarso
Soejatman, who helps manage about US$61 million at First State
Investments in Jakarta. "We are back to market weight."

The Jakarta Composite Index gained 7.45, or 0.7 percent, to
1033.28 at the 4 p.m. close, its biggest gain since Oct. 31. The
measure earlier fell as much as 0.2 percent.

Astra added Rp 250, or 3 percent, to Rp 8,700, its biggest
gain in more than a month. The company said it sold 19,723 units
locally last month, down 15.6 percent from a year earlier.

"We were expecting Astra's October sales to decline to the
15,000 level, which would have been in line with the overall
market," Robert Adair, an analyst with CIMB-GK Research Pte, said
in a note to investors. The 15 percent decline "was better than
expected."

Elsewhere, PT Semen Gresik, the biggest cement maker, and PT
Indocement Tunggal Prakarsa rose after Investor Daily Indonesia
said construction of two toll-roads in Jakarta and neighboring
cities will start next year, boosting demand for cement.

Semen Gresik added Rp 650, or 3.5 percent, to Rp 19,150. PT
Indocement Tunggal advanced Rp 100, or 3.4 percent, to Rp 3,050.
The first project includes building a toll road that will connect
the Cinere area in south Jakarta and three neighboring cities,
the newspaper reported, citing Hisnu Pawenang, head of the
Indonesian toll-road regulator.

PT Bank Mandiri, the nation's largest lender by assets, rose
Rp 30, or 2.7 percent, to Rp 1,140 as investors bet recent
declines were excessive. The stock's 14-day relative strength
measure, derived by averaging out daily gains and losses, had a
reading of 16.4 on Wednesday, lower than 30, which indicates to
some investors that the stock is poised to gain.

PT Medco Energi Internasional, the country's biggest publicly
traded oil company, added Rp 25, or 0.8 percent, to Rp 3,125.
Crude oil for December delivery rose 1.6 percent to $57.88 a
barrel on Wednesday in New York, rebounding from the lowest in
four months as the U.S. government reported an unexpected decline
in supplies. The contract was recently at $57.78 in after-hours
electronic trading.

PT International Nickel, the Indonesian unit of the world's
second largest nickel miner, gained Rp 350, or 2 percent, to Rp
11,850. "The stock has fallen 25 percent since October and has
breached our 12,000 target price," Michael Chambers, head of
Indonesian research at CLSA Asia-Pacific Markets, wrote in a note
to investors on Thursday. "It now looks well priced."

PT Mustika Ratu, a cosmetics maker, fell Rp 15, or 5.5
percent, to Rp 260. The company may miss its sales target of Rp
350 billion (US$34.9 million) this year as competition increases
and consumer demand declines after the government raised retail
fuel prices in March and October, Bisnis Indonesia newspaper
reported, citing President Director Mooryati Soedibyo.