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.