Stocks climb for 5th day; Danamon, Antam advance

Stocks climb for 5th day; Danamon, Antam advance

Naila Firdausi, Bloomberg/Jakarta

Indonesian stocks advanced for a fifth day, the longest winning
stretch in six weeks. PT Bank Danamon and PT Astra International
rose after the central bank said it will try to avoid
"substantial" interest rate increases.

PT International Nickel Indonesia and PT Aneka Tambang gained
after nickel prices climbed to a one-month high.

The Jakarta Composite Index added 7.47, or 0.7 percent, to
1062.46 at the 4 p.m. local time close, extending a four-day, 3.7
percent advance. The five-day winning streak matched a period
ended Oct. 5. Rising stocks led decliners 57 to 47 today.

Burhanuddin Abdullah, governor of Bank Indonesia, said on
Monday the central bank will try to avoid a "substantial" rate
increase, even with inflationary pressures, because it doesn't
want to hurt economic growth.

"Investors are betting interest rates will not be raised as
much as was expected and that provides positive sentiment for
stocks, especially banks," said Bambang Setiadi, who helps manage
the equivalent of US$150 million at PT Sinar Mas Sekuritas.

Danamon, Indonesia's fifth-largest lender by assets, gained Rp
175, or 4.8 percent, to Rp 3,825 as concern of higher costs to
pay depositors and of slowing demand for loans eased. PT Bank
Mandiri, the largest, added Rp 10, 0.9 percent, to Rp 1,190.

Astra, Indonesia's largest auto retailer that sells most of
its cars and motorcycles through loans, rose Rp 100, or 1.1
percent, to Rp 9,150.

Stocks also rose after Indonesia's economic growth slowed less
than some economists had estimated in the third quarter. The
economy grew 5.3 percent in the three months ended Sept. 30, the
slowest in a year, as rising fuel costs, higher inflation and
interest rates curbed consumer spending. Still, the pace of
growth beat a 5.1 percent median forecast in a Bloomberg survey
of 12 economists.

Government spending increased 16.2 percent in the three months
ended September from a year ago. Investment grew 9.2 percent and
household consumption rose 4.4 percent.

"We had expected the growth would slow; I think the rate came
out good," said Prayoga Triyono, head analyst at PT Henan
Putihrai in Jakarta.

PT Telekomunikasi Indonesia, the country's biggest telephone
company, gained Rp 50, or 1 percent, to Rp 5,200.

Nickel for delivery in three months on the London Metal
Exchange jumped 3.4 percent to $12,350 a metric ton on Nov. 18,
the highest close since Oct. 18. PT Aneka Tambang, a nickel and
gold miner 65 percent owned by the Indonesian government, gained
Rp 75, or 3.1 percent, to Rp 2,500. PT International Nickel
Indonesia, the local unit of Canada's Inco Ltd., jumped Rp 600,
or 4.8 percent, to Rp 13,000.

"The view is that the nickel price is unlikely to fall again
as demand seems to continue growing," said Suherman Santikno,
head of research at PT Indo Premier Securities in Jakarta. "With
the outlook of higher metal prices, Aneka and International
Nickel are very attractively valued."

PT Indocement Tunggal Prakarsa, Indonesia's second-largest
cement maker by sales, advanced Rp 75, or 2.4 percent, to Rp
3,175. The company may post a lower foreign currency loss this
year, mainly due to a $150 million hedging arrangement, Bisnis
Indonesia newspaper said, citing Director Christian Kartawijaya.
Indocement had a Rp 498 billion currency loss last year,
according to a previously published report.