STOCKS NEWS INDONESIA-UBS cuts Media Nusantara to neutral

Wed Dec 5, 2012 3:52am EST

UBS Investment Research cut its rating on PT Media Nusantara Citra Tbk to 'neutral' from 'buy', but raised its target price to 2,975 rupiah from 2,650, citing its ability to gain market share and raising the dividend payout up to 60 percent.

"We downgrade our rating since we do not see much earnings upside yet, which indicates limited upside to our price target," analyst Ronald Liem wrote in a note on Wednesday.

The research house also said there was a potential catalyst of foreign ownership increasing, from the television channel operator's inclusion in the MSCI index.

Media Nusantara's shares were up 0.94 percent at 2,675 rupiah, and the broader index was up 0.22 percent.

1541 (0841 GMT)

(Reporting by Andjarsari Paramaditha; Editing by Prateek Chatterjee) *************************************************************** 14:38 RTRS-STOCKS NEWS INDONESIA-Nusa Konstruksi surges on contract booking

Shares in PT Nusa Konstruksi Enjiniring Tbk touched a one-year high of 157 rupiah on Wednesday after the construction firm said it booked contracts for 2.25 trillion rupiah ($26.04 million) in November, up 196 percent from last year.

"The contracts will have 1.5 to 2 years working period and will contribute to our income until 2014," the company said in a filing to the stock exchange.

Nusa is working on apartment, office and condotel projects in Jakarta and Surabaya, as well as infrastructure project with Indonesian unit of oil and gas giant Chevron Corp in Riau, it said in the filing.

Shares of the property developer were up 5.41 percent at 156 rupiah, and were the fourth highest traded with volume of 86.8 million shares. The broader index was up 0.16 percent.

($1 = 9,600 rupiah)

1417 (0717 GMT) (Reporting by Andjarsari Paramaditha, Editing by Jijo Jacob) *************************************************************** 13:40 STOCKS NEWS INDONESIA-UBS upgrades Gudang Garam to 'buy'

UBS Investment Research raised its rating on Indonesian cigarette maker PT Gudang Garam Tbk to 'buy' from 'neutral', saying the company's ability to raise prices is helped by a widening price gap, potential fixing of product portfolio and rising minimum wages. "Under the new excise tax structure, there has been an increase in minimum retail prices on which the tax is based. Average excise tax increase is set at 8 percent, lower than our 12 percent estimate," analyst Bonny Setiawan wrote in a note on Wednesday. "The new tax structure will require Gudang Garam to raise average selling price for its cheaper products to meet the new minimum retail price, which is 5 percent higher than previously set. A wider range of retail prices could also benefit Gudang Garam due to a potentially lower excise tax." The research house raised its target price on the company to 64,800 rupiah from 57,000 rupiah. Gudang Garam shares were up 0.84 percent at 54,300 rupiah, while the broader index was up 0.13 percent. 1335 (0635 GMT) (Reporting by Andjarsari Paramaditha, Editing by Jijo Jacob)