Stocks advance, paced by Telkom, Astra on rupiah

Stocks advance, paced by Telkom, Astra on rupiah

Bloomberg/Jakarta

Indonesian stocks rose, paced by PT Telekomunikasi Indonesia and
PT Astra International, after the rupiah gained for the first day
in three, easing concern the cost of imports and servicing
dollar-denominated debt will escalate.

"The stronger rupiah really lifts sentiment on the market,"
said Christine Salim, head of research at PT Samuel Securities in
Jakarta. "It also eases pressure that interest rates will rise."

The Jakarta Composite Index rose for a second day, adding
12.9, or 1.2 percent, to 1123.46 at the 4 p.m. local time close.
Almost two stocks gained for each one that fell.

The rupiah climbed 0.4 percent to Rp 9,763 against the dollar
at 3:59 p.m. Jakarta time. It rose to Rp 9,721 a dollar earlier,
the highest since June 30. A stronger currency reduces the cost
of importing components and machinery and makes repayments on
foreign-currency debt cheaper.

Telekomunikasi, the nation's biggest telephone company,
climbed 25 rupiah, or 0.5 percent, to 4,975. Telkom has about
$750 million in dollar-debt and imports most of its equipment. PT
Indocement Tunggal Prakarsa, which has about $495 million in debt
as of December, gained 100 rupiah, or 2.9 percent, to 3,550.

Astra, the country's biggest automobile distributor, rose 250
rupiah, or 2.1 percent, to 12,450. The shares plunged 6.2 percent
last week. Astra imports about half of its components.

PT Bank Mandiri, the biggest lender by assets, gained Rp 20,
or 1.4 percent, to Rp 1,500. PT Bank Lippo, the ninth- largest
lender, jumped 120 rupiah, or 10 percent, to 1,320.

The benchmark, up 0.4 percent at the midday break, extended
gains after the government said it plans to build a new oil
refinery plant in Java, potentially reducing the nation's fuel
bill.

"The index fell last week on budget deficit concerns because
high oil prices swell" government fuel subsidies, said Suherman
Santikno, head of research at PT IndoPremier Securities. "Higher
investment in the energy sector will boost oil output and cut our
imports and help budget." Indonesia imports a third of its fuel
products.

The following stocks also rose or fell. Stock symbols are in
parentheses after company names.

PT Bakrie & Brothers (BNBR IJ), a company with interests
ranging from property to telecommunications, jumped Rp 15, or
12.5 percent, to 130. The stock, which is trading at 0.82 times
its sales and 0.6 times its book value, "is attractively priced,"
said Edwin Sinaga, senior sales manager for PT Kuo Capital
Raharja in Jakarta. "There is also expectation the company will
win some infrastructure projects."

The Jakarta Composite Index is trading at 1.3 time sales and
2.3 time book value, according to Bloomberg data. Kuo was the
second-biggest net buyer of Bakrie shares today.

PT Indosat (ISAT IJ), Indonesia's second-biggest telephone
company, added Rp 150, or 2.8 percent, to 5,450 on expectations
the company will report improved earnings in the second quarter.
Deutsche Bank AG estimates the company added 2.7 million new
subscribers in the three months ended June 30, compared with
435,000 users in the first quarter.

"We expect that the performance in the second quarter of 2005
will improve as capacity constraints go and network quality
improves," Deutsche Bank analyst Raymond Kosasih wrote in a note
to clients dated today. "We estimate second-quarter mobile
revenue of 2.3 trillion rupiah, up 39 percent on year,"

PT Ramayana Lestari Sentosa (RALS IJ), the nation's biggest
retailer by value, slid Rp 20, or 2.3 percent, to 870. Investors
who buy the shares today are no longer entitled to a Rp 30 a
share dividend the company will pay on July 27.

PT Tambang Batubara Bukit Asam (PTBA IJ), a state-controlled
Indonesian coal miner, gained 30 rupiah, or 2 percent, to 1,530.
The company is considering buying three coalminers in Kalimantan,
Bisnis Indonesia reported, citing company President Ismet
Harmaini.