STOCKS NEWS INDONESIA-Bank Central Asia shares up as Fitch affirms rating

Fri Sep 14, 2012 5:10am EDT

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Shares in Bank Central Asia (BCA) jumped 3 percent on Friday after Fitch affirmed its long-term issuer default rating of 'BBB-' with a 'stable' outlook on Indonesia's third-largest lender.

"BCA's ratings reflect its demonstrated track record of strong financial performance, relative to rated domestic peers, through economic cycles," Fitch said in statement.

Fitch also expects the bank to maintain its healthy profitability and capital position, without significantly compromising its strong asset quality.

The rating agency expects Bank Central Asia's to post "satisfactory" earnings on the back of strong non-interest income and manageable asset quality.

Shares of the company were trading up 3.16 percent at 8,150 rupiah, while the broader Jakarta Composite Index was up 1.61 percent.

1530 (0830 GMT) (Reporting by Andjarsari Paramaditha in Jakarta)

**************************************************************** 15:14 STOCKS NEWS INDONESIA-Index up, boosted by Fed stimulus

The Jakarta Composite Index was up 2.17 percent on Friday after the U.S. Federal Reserve announced stimulus measures on Thursday.

The Fed launched another aggressive stimulus program saying it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market.

The mining sector led the rise with a 4.21 percent jump, followed by agriculture stocks with 3.36 percent.

"The stimulus and stand-by policy on Eurobonds pushed up the commodity market. Hence, all commodity-related stocks got a boost. This had a great impact, given Indonesia is rich in natural resources," sa i d Fadlul Imansyah, equity fund manager at CIMB Asset Management in Jakarta. 1454 (0754 GMT) (Reporting by Andjarsari Paramaditha in Jakarta)

**************************************************************** 12:44 STOCKS NEWS INDONESIA-Citi initiates Alam Sutera with 'buy'

Citi Research started coverage of property developer PT Alam Sutera Realty Tbk with a 'buy' rating, saying it was the most liquid property stock in Indonesia with an attractive price-to-earnings ratio. "The stock's 34 percent plunge in five months in reaction to a Bali acquisition that makes up just 4 percent of NAV is a good entry point, in our view," Ferry Wong, Citi's head of research in Indonesia, said in a note on Friday. "ASRI looks attractive at 8.6x 12E PE and is the most liquid property stock in Indonesia with a 3-month ADT of US$4.5m," Wong said and set a target price of 660 rupiah on the stock. The broker said ASRI's landbank in Serpong was its key asset and property demand had been strong there, with the ASP growing at a 44 percent CAGR in full-year 2007-2012 earnings. "Alam Sutera's eight-month pre-sales this year reached 2.8 trillion rupiah ($292.35 million), or 80 percent of the company's full year target and 65 percent of our forecast," Wong noted in the report. The company continued to enjoy 47 percent of net margin in first-half this year, much higher than the peer average of 30 percent, he said. Potential upside catalysts for the company include strong execution in Jakarta's outskirts Pasar Kemis, master plan announcement of Bali-based project Garuda Wisnu Kencana and acquisition of additional landbank in Serpong, the broker said. The real estate firm's shares were up 5.43 percent at 485 rupiah while the broader index was up 2.02 percent. 1238 (0538 GMT)

($1 = 9,577.5 rupiah) (Reporting by Andjarsari Paramaditha)

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