Monday, September 27, 2010

Jakarta Stocks Surge Higher on US Data, Rupiah Steady Near Three-Year High

Bloomberg & JG | September 27, 2010
World stocks rose modestly on Monday as improved United States indicators eased some worries. (Antara Photo) World stocks rose modestly on Monday as improved United States indicators eased some worries. (Antara Photo)

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Jakarta. The Indonesian stock market joined in a global rally on Monday as better-than-expected economic data out of the United States on Friday boosted confidence in the global economic recovery, pushing commodities prices higher.

The Jakarta Composite Index surged 70.41 points, or 2.1 percent, to close at 3,468.04, as it continued its march to a new all-time high. Volume was heavy, with about 6.97 billion shares worth Rp 6.24 trillion ($692.5 million) changing hands. Gainers trounced decliners 159 to 58.

The JCI has risen 19 percent in the third quarter, making it Southeast Asia’s third-best performer after the Philippines’ 22 percent and Thailand’s 21 percent over the period.

The region’s strong economic performance continued to lure foreign investors. Indonesia has recorded $1.39 billion of foreign buying so far in the third quarter, three times higher than the previous quarter.

Astra Agro Lestari, the nation’s largest listed plantation company, gained 2.1 percent to Rp 22,350, the highest close since April 28. Palm oil futures advanced 1.5 percent to 2,741 ringgit ($887) a metric ton in Kuala Lumpur, rising for a second day.

Astra International, Indonesia’s biggest automotive retailer, climbed 3.8 percent to Rp 58,100. Domestic vehicle sales in August rose to 64,762 units from 48,099 units a year earlier, Astra said, citing data from an industry association.

Astra Graphia, which sells and rents office equipment, jumped 24 percent to Rp 620, the steepest gain since April 2009. Kim Eng Securities said in a report on Monday that the company expected 2010 net income to rise 35 percent from a year earlier.

Tri Polyta Indonesia, producer of polypropylene, surged 13 percent to Rp 3,675, a record close.

Chandra Asri, also in petrochemicals, will be merged into Tri Polyta through a $1.2 billion share-swap, the two companies said in a statement published in Bisnis Indonesia on Monday.

Each share of Chandra Asri will be swapped with 42,660.5 new shares of Tri Polyta with completion of the transaction expected by January, the statement said.

Bank Central Asia, Indonesia’s biggest lender by market value, climbed 3.1 percent to Rp 6,700 amid speculation that next year’s inflation will remain benign, providing greater scope for the central bank to delay raising borrowing costs, said Muhamad Sugiarto, an analyst at Lautandhana Securindo.

The rupiah traded near a three-year high after foreign investors added to their holdings of the country’s assets, at 8,954 per dollar as of the stock market’s close

“The rupiah will follow the strengthening Asian currencies on capital inflows,” said Aris Setiawan, a foreign-exchange trader at Bank Chinatrust Indonesia in Jakarta.

“The central bank has been active in the market, buying dollars this morning. The currency has room to strengthen, but Bank Indonesia wants to keep exports competitive.”

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