Bloomberg Indonesia’s Jakarta Composite index added 3.4 percent

March 23 (Bloomberg) -- Indonesia’s Jakarta Composite index added 3.4 percent to 1,406.65 at the close, its biggest advance since Jan. 5. The benchmark index has climbed for four straight days, the longest-winning streak since the period ended Nov. 28.

Bank, phone stocks: Indonesian telecommunications and bank stocks are among those that Templeton Asset Management Ltd. favors, Mark Mobius said in an interview with Bloomberg Television today. These include PT Bank Central Asia (BBCA IJ), said Mobius, who helps oversee about $20 billion of emerging- market assets at the San Mateo, California-based asset manager.

PT Telekomunikasi Indonesia (TLKM IJ), the nation’s largest telephone company, climbed 3.5 percent to 7,350 rupiah, its highest close since Sept. 10. It was the biggest contributor to gains on the benchmark index. Bank Central Asia, the nation’s largest financial services company by market value, added 3.4 percent to 3,050 rupiah. PT Bank Mandiri (BMRI IJ) surged 11 percent to 2,150 rupiah, its largest gain since Dec. 15.

Palm-oil producers: Indonesia may raise overseas shipments of palm oil by 17 percent this month compared with February on higher demand from China and India, according to Susanto, marketing head of the Indonesian Palm Oil Producers’ Association. Meanwhile, palm oil prices rose as much as 3.3 percent to 2,051 ringgit ($563) in Malaysia today.

PT Astra Agro Lestari (AALI IJ), Indonesia’s biggest agricultural company by value, gained 4.5 percent to 12,900 rupiah, halting a two-day slide. PT Sampoerna Agro (SGRO IJ), the Indonesian palm oil producer owned by billionaire Putera Sampoerna, climbed 2.5 percent to 1,210 rupiah, its highest close in a month.

PT Aneka Tambang (ANTM IJ), Indonesia’s second-largest nickel producer, climbed 1.8 percent to 1,140 rupiah, its highest close in more than two weeks. Aneka Tambang plans to spend $37 million to buy coal mines and explore for the fuel in its existing concessions, Investor Daily Indonesia reported, citing Corporate Secretary Bimo Budi Satriyo. The funds would be part of 2.55 trillion rupiah ($217 million) of capital spending this year, the report said.

PT Astra International (ASII IJ), Indonesia’s biggest auto retailer, rallied 8.8 percent to 14,900 rupiah, its highest close since Oct. 7. Astra had its share-price estimate raised 18 percent to 16,750 rupiah at Bank of America Corp., which said in a March 20 report that motorcycle and car sales will decline less than earlier estimated.

PT Bank Danamon Indonesia (BDMN IJ), the lender backed by Temasek Holdings Pte and Deutsche Bank AG, surged 11 percent to 2,925 rupiah, the largest gain since Nov. 27, on speculation that shareholders will approve today its 4 trillion rupiah ($343 million) rights offer plan.

“People expect the rights offer will be approved by shareholders,” said Poltak Hotradero, head of research at PT Recapital Securities in Jakarta. “Non-performing loans may rise this year, so if Danamon wants to grow its lending at a time when provisions increase, it must boost capital.”

PT Bumi Resources (BUMI IJ), Asia’s largest exporter of power-station coal, climbed 2.7 percent to 770 rupiah. About 242.7 billion rupiah of Bumi shares changed hands, making it the most actively traded stock by value.

Bumi may pay 30 percent of last year’s net income in dividends, Kontan newspaper reported, citing Dileep Srivastava, the company’s head of investor relations. The company’s 2008 profit excluding one-time gains may have doubled from $317 million in 2007, the report said.

PT Indocement Tunggal Prakarsa (INTP IJ), Indonesia’s second-largest cement maker, rallied 4.1 percent to 4,450 rupiah, the highest close since Feb. 13. Indocement had its rating raised to “buy” from “hold” by PT Samuel Sekuritas after the company posted higher-than-expected profit last year. Indocement reported on March 20 a record net profit of 1.74 trillion rupiah ($150 million) for last year.

To contact the reporter on this story: Chen Shiyin in Jakarta at schen37@bloomberg.net
Last Updated: March 23, 2009 05:53 EDT