Monday, March 8, 2010
Strong Corporate Earnings Deliver Big Gain to Indonesian Bourse
Source: Jakarta Globe
Ardian Wibisono & Bloomberg

The Jakarta Composite Index opened the week on a positive note as it climbed 1.9 percent, its steepest gain in five weeks, backed by strong 2009 earnings reports from several major companies and easing political strife over Bank Century. Analysts expect the rally to continue through the week.

The benchmark index rose 47.67 points to close at 2,626.45. Trading volume was moderate, with 4.8 billion shares worth Rp 3.5 trillion ($381.5 million) changing hands. Foreign buying accounted for Rp 540.71 billion of the total.

"Since Friday, sentiment has been driven globally by increasing commodity prices and at home by easing political tension after the Bank Century probe," said Ikhsan Binarto, an analyst at PT Optima Kharya Securities. "Several companies that issued positive financial performance reports also contributed to the JCI. Through the end of March, financial reports are expected to help the JCI climb higher, although with several corrections from profit-taking."

Purwoko Sartono, an analyst at PT Panin Sekuritas, agreed that foreign investors were buying more shares on the Indonesia Stock Exchange (IDX) because of the global economic recovery and domestic political stability had increased their confidence.

Announcing 2009 financial reports on Monday were PT Semen Gresik, PT Tambang Batubara Bukit Asam, PT Bank Tabungan Negara and PT Indosat.

Semen Gresik, the nation's top cement producer, reported that net profit surged 31 percent to Rp 3.3 trillion from Rp 2.52 trillion in 2008. The company's shares rose 2 percent to Rp 7,600.

State-owned miner Tambang Batubara Bukit Asam posted a 59 percent increase in profit on higher sales of coal. The shares climbed 2.2 percent to Rp 15,950, the biggest gain since Feb. 16.

Bank Tabungan Negara, the nation's leading mortgage lender, said 2009 profit rose 14 percent to Rp 490 billion. Its shares moved up 2.9 percent to Rp 1,060.

Indosat, the nation's No. 2 telecom, saw its stock rise 3.6 percent to Rp 5,750, despite 2009 profit dropping 20 percent to Rp 1.5 trillion. Sentiment was boosted by news that Indosat's parent company, Qatar Telecom, on Sunday posted a 21 percent jump in full-year profit as it added new customers and expanded operations in overseas markets including Indonesia.

PT Astra International and PT Bumi Resources were also in demand. Astra shares jumped 6 percent to a record high of Rp 39,000. PT Astra Honda Motor, Astra's motorcycle division, sold 242,865 units last month, a 21 percent increase from the year-earlier period, the company said on Sunday.

Bumi Resources, the country's biggest coal producer, saw its shares rise 2.1 percent to Rp 2,450 after it set its 2012 production target at 111 million metric tons, 85 percent higher than the 60 million tons of output last year.