Stocks fall; Indosat, Permata drop on lower profits
Stocks fall; Indosat, Permata drop on lower profits
Bloomberg Jakarta
Indonesian stocks fell, taking the index to a one-month low, after companies such as PT Indosat and PT Bank Permata reported declines in earnings.
"Earnings have been disappointing," said Bambang Setiadi, who helps manage about US$140 million at PT Sinar Mas Sekuritas in Jakarta.
"This raises questions whether those who haven't reported yet also will disappoint."
The Jakarta Composite Index fell 5.44, or 0.5 percent, to close at 1,058.26, the lowest since Sept. 29. Declining stocks led gainers 43 to 34 on the benchmark. The index fell 1.7 percent this week, its second weekly slide.
Indosat, Indonesia's second-biggest phone operator, lost Rp 150, or 3 percent, to Rp 4,900, the lowest close since Sept. 28. About 37.3 million Indosat shares changed hands on Friday, more than four times the three-month daily average trading volume.
The company posted a 58 percent decline in profit to Rp 232 billion ($23 million) in profit for the three months ended Sept. 30 because of foreign-exchange losses.
Indosat posted a foreign-exchange loss on paper of Rp 238 billion in the third quarter after the rupiah depreciated 5.4 percent in the three months ended Sept. 30, increasing the cost of repaying the company's $378 million of overseas debt.
Permata, a lender partly owned by Standard Chartered Plc, dropped Rp 20, or 3.6 percent, to Rp 540, its biggest slide since Sept. 13.
"It was a much lower-than-expected performance," said Harris Dalimunthe, an analyst at PT BNI Securities in Jakarta.
"I will downgrade my earning estimates and may cut my recommendation" from the current "buy."
PT Perusahaan Gas Negara, a gas distributor, gained Rp 50, or 0.9 percent, to Rp 5,400. Profit rose 20 percent in the nine months ended Sept. 30 to Rp 427.3 billion after higher gas prices bolstered revenue.
PT Tambang Batubara Bukit Asam, Indonesia's state- controlled coal-miner, climbed Rp 50, or 2.9 percent, to Rp 1,800. The company said last night net income in the nine months ended Sept. 30 rose 36 percent to Rp 364.9 billion as higher prices of the fuel drove up sales.
PT Timah, the world's biggest integrated tin-miner, dropped Rp 30, or 1.8 percent, to Rp 1,650. Net income declined 13 percent in the nine months ended Sept. 30 to Rp 101.2 billion because of lower tin prices, the company said on Thursday.