Stocks rise; Telkom, Bimantara gain

Stocks rise; Telkom, Bimantara gain

Naila Firdausi, Bloomberg/Jakarta

Indonesian stocks rose for a second day, led by PT Telekomunikasi Indonesia (Telkom) and PT Indosat, after Fitch Ratings said the country's cellular subscribers will continue growing next year and in 2007.

Stocks also climbed on speculation President Susilo Bambang Yudhoyono would announce a new cabinet as early as Monday night. PT Indocement Tunggal Prakarsa, Indonesia's biggest cement maker by value, rose.

"The news on possible changes boosted interest in the big stocks," said Fendi Susiyanto, who helps manage about US$170 million at PT Bank Permata in Jakarta.

The Jakarta Composite Index added 1.16, or 0.1 percent, 1120.58 at the 4 p.m. local time close. Declining stocks led gainers 58 to 50. The measure jumped 2.1 percent on Dec. 2 to its highest close since Aug. 12 on reports Susilo would shuffle his cabinet.

Telkom, the nation's biggest phone company that controls the country's biggest cellular-phone operator, gained Rp 100, or 1.8 percent, to Rp 5,650. Indosat, the second-largest, climbed Rp 50, or 0.9 percent, to Rp 5,650.

The number of Indonesian cellular subscribers may grow by more than 40 percent this year, Fitch said in an e-mailed statement. Growth in demand "should remain robust throughout 2006 and 2007," the rating agency said in the statement.

Indocement rose Rp 100, or 2.9 percent, to Rp 3,550. The President met with Vice President Jusuf Kalla in Yogyakarta on Monday for final discussions before announcing the reshuffle, said Presidential Spokesman Andi Mallarangeng.

"Assuming an improved economy with the new cabinet, Indocement will benefit because it can boost its output quickly," said Andrey Wijaya, an analyst at PT Kim Eng Securities in Jakarta. He rates the stock "buy." Indocement's "plants are now running at 75 percent to 80 percent capacity."

Indonesia, the world's second-biggest palm oil producer, may produce 14.4 million tons of crude palm oil next year, up 9 percent from 13.2 million tons estimated for this year, Benny Tjoeng, vice president of PT Astra Agro Lestari, said over the weekend.

Astra Agro, Indonesia's biggest publicly traded agricultural company, climbed Rp 50, or 0.9 percent, to Rp 5,750. PT Perusahaan Perkebunan London Sumatra Indonesia, the second largest, rose Rp 25, or 0.8 percent, to Rp 3,175, the highest close since Feb. 9, 1998.

"The stocks have good earnings outlook," said Ben Santoso, an analyst at PT Namalatu Cakrawala Sekuritas in Jakarta. "I expect palm oil prices in Rotterdam to average $460 a metric ton next year, compared with this year's $420 a ton."

PT Astra International, Indonesia's biggest auto distributor, fell Rp 150, or 1.6 percent, to Rp 9,400. Sales of motorcycles in Indonesia may fall by as much as 10 percent in 2006 because of higher interest rates and fuel prices, Tossin Himawan, executive Vice President of Astra's venture PT Astra Honda Motor, said late Friday.

Car sales will probably slide to between 400,000 and 500,000 vehicles in 2006, from an estimate of as many as 530,000 this year, Astra International's Director Johnny Darmawan said.

PT Bimantara Citra, an Indonesian media and telecommunications company, jumped Rp 300, or 14 percent, to Rp 2,500, its highest close since March 22. Bimantara is in talks to sell a stake in its mobile-phone unit, PT Mobile-8 Telecom, Bimantara's Director Alexander Edwin Kawilarang said on Monday in a phone interview. He declined to provide the name of the investor and other details.

"Bimantara will likely sell the stake at a premium as the business has a promising outlook," said Suherman Santikno, head of research at PT Indo Premier Securities in Jakarta. "Bimantara will benefit from the sale because the unit still reports losses."

PT Bank Niaga, Indonesia's eighth-largest lender by assets, lost Rp 20, or 4.9 percent, to Rp 390, its biggest drop since a 5.6 percent slide on Nov. 9. The stock jumped 14 percent in the previous three days of trading.

"The recent jumps prompted investors to realize gains," said Indo Premier's Santikno.