Stocks slide for first week in five as Telkom falls

Stocks slide for first week in five as Telkom falls

Naila Firdausi and Soraya Permatasari, Bloomberg/Jakarta

Indonesia's stock index recorded its first weekly loss in five as some investors bet the recent rise was excessive given the central bank's forecast of slowing economic growth. PT Telekomunikasi Indonesia (Telkom) led declines.

"Gains were defying fundamentals," said Ferry Yosia Hartoyo, Jakarta-based head of Indonesian research at DBS Vickers Securities. "People haven't priced in slowing growth."

The Jakarta Composite Index lost 12.54, or 1.1 percent, to 1143.43 at the 4 p.m. local time, the lowest close since Dec. 6. About three stocks fell for every two that rose. The measure slid 1.4 percent this week, ending a four-week, 13 percent gain.

The key index had its biggest loss in eight weeks on Thursday after Bank Indonesia said the economy will probably grow 4 percent to 4.5 percent from a year ago in fourth quarter, slower than the pace recorded in the third quarter.

The US$258 billion economy expanded 5.3 percent in the three months ended Sept. 30 from a year earlier, the slowest pace in a year, as rising fuel costs, higher inflation and interest rates curbed consumer spending.

Telkom, the biggest telephone company, dropped Rp 200, or 3.4 percent, to Rp 5,700, its biggest slide since Oct. 7. PT Unilever Indonesia, the biggest maker of detergents and food, loss Rp 50, or 1.2 percent, to Rp 4,275.

PT Astra International, Indonesia's biggest auto distributor, declined Rp 250, or 2.4 percent, to Rp 10,050. Astra, which imports half of its components, also fell as the rupiah weakened, raising concern import costs will swell.

The rupiah slipped to as low as 9,880 to a dollar on Friday, the weakest since Dec. 7. The currency is at 9,871 a dollar at 3:26 p.m. Jakarta time.

The weaker rupiah "weighed on sentiment for stocks," said Adi Nugroho Wicaksono, research manager at PT Sucorinvest Central Gani in Jakarta.

PT Kalbe Farma, Indonesia's biggest drugmaker, slipped Rp 10, or 1.1 percent, to Rp 920. PT Tempo Scan Pacific, the second biggest, lost Rp 150, or 2.5 percent, to Rp 5,850. Indonesian drugmakers import about 90 percent of raw materials.

Nickel for delivery in three months fell 0.6 percent to $13,625 a metric ton on Thursday on the London Metal Exchange. The contract was at $13,500 a ton at 9:20 a.m. London time, set for its fifth day of decline.

PT International Nickel Indonesia, a local unit of the world's second-biggest nickel-mining company, Inco Ltd., dropped Rp 150, or 1.2 percent, to Rp 12,800. PT Aneka Tambang, a gold and nickel miner 65 percent owned by the government, slid Rp 50, or 1.5 percent, to Rp 3,200.

PT Astra Agro Lestari, Indonesia's biggest publicly traded agricultural company, declined Rp 100, or 1.8 percent, to Rp 5,500. Palm oil for delivery in February fell 0.1 percent to 1,394 ringgit ($369) a ton on the Malaysian Derivatives Exchange at 4:49 p.m. Kuala Lumpur time. Malaysia is the world's biggest producer of the edible oil.

PT Energi Mega Persada, Indonesia's second-biggest publicly traded oil company, added Rp 10, or 1.4 percent, to Rp 740. The company signed contracts worth $1.9 billion to supply fuel to four customers, including state utility company PT Perusahaan Listrik Negara.

PT Tambang Batubara Bukit Asam, the state-controlled coal miner, climbed Rp 10, or 0.6 percent, to Rp 1,750. The company said on Thursday its coal output may rise 6 percent next year.