Indonesia stocks rose, recovering from the biggest four-day drop in two years, after gains in oil and metal prices boosted commodity producers and on speculation the fall was excessive relative to companies’ earnings outlook.
PT Adaro Energy jumped 6.1 percent after crude oil rose to a one-week high, improving the appeal of alternative fuels such as coal.
PT Energi Mega Persada climbed 5.2 percent after it began production at an oil field.
PT Bank Rakyat Indonesia, the second biggest bank by assets, added 4.2 percent as Citigroup Inc. predicted the nation’s economic growth will accelerate.
The Jakarta Composite index climbed 2.9 percent to 3,554.77 as of the 4 p.m. local-time close, posting the biggest gain among Asian markets on Wednesday.
It plunged 8.7 percent in the past four days, the sharpest drop since November 2008, amid concern faster inflation will spur interest-rate increases.
Stocks are trading at 14.45 times 2011 estimated earnings, the lowest level since June, according to data compiled by Bloomberg.
“The index level at below 3,500 presents a good buying opportunity,” said Arfan Karniody who helps manage $1.1 billion in assets at Jakarta-based PT Batavia Prosperindo Aset Manajemen.
“Valuation looks attractive again.”
Crude oil for February delivery rose 2.1 percent to $91.11 a barrel in New York yesterday, the highest settlement since Jan. 3.
The London Metal Exchange Index of prices for six industrial metals including nickel jumped 1.7 percent yesterday, ending four straight days of losses.
Rubber advanced to a record with the June delivery contract rising as high as 451 yen a kilogram ($5,433 a metric ton) in after-hours trading in Tokyo.
Adaro, Indonesia’s second-largest coal producer, jumped 6.1 percent to Rp 2,625, the biggest boost to the Jakarta Mining Index.
PT Aneka Tambang, a state-owned nickel and gold producer, rallied 6.7 percent to Rp 2,400 and PT Perusahaan Perkebunan London Sumatra Indonesia, which plants rubber trees, gained 4.3 percent to Rp 12,050.
Energi Mega, Indonesia’s second-largest listed oil company, increased 5.2 percent to Rp 121 after saying it has begun production at its Pagerungan Utara oil field, offshore of east Java.
The oil field will have an estimated output of 6,000 barrels a day.
Bank Rakyat added 4.2 percent to Rp 5,000.
PT Bank Negara Indonesia, the third-largest state-owned bank, climbed 5.5 percent to Rp 3,375.
Indonesia’s economic growth may accelerate to 6.3 percent this year as domestic demand and investment picks up, Johanna Chua, the Hong Kong-based head of Asian economic research at Citigroup, wrote in a note to clients on Wednesday.
Southeast Asia’s biggest economy may have expanded 6 percent last year compared with 4.5 percent in 2009, the central bank said on Jan. 5.
News Source : The Jakarta Globe, Bloomberg
Photo Source : belajarsaham.net
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January 14th, 2011 → 1:23 pm
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