STOCKS NEWS INDONESIA-Macquarie expects modest returns in 2013

Wed Jan 9, 2013 4:07am EST

Macquarie Equity Research said returns in 2013 would be modest, citing rising inflation, weaker sentiment, higher risk on the currency and high valuation.

"The Jakarta Composite Index has returned a more modest 8 percent per year in the last two years versus 26 percent in the last 10 years," the research house said in a note on Wednesday.

Macquarie's top picks are state-controlled firms, such as lenders Bank Rakyat Indonesia and Bank Pembangunan Jawa Barat Dan Banten, gas producer Perusahaan Gas Negara and telecommunications provider Indosat .

"Our year-end index target is 4,400, implying total return of only 2.7 percent. JCI has underperformed the rest of Asia in 2012, the first time since 2008, and we believe it will underperform again in 2013," Macquarie said.

The research house's preferred sectors include telecom and financials while least preferred are consumer and mining.

The broader index was down 1.02 percent. 1607 (0907 GMT) (Reporting by Andjarsari Paramaditha in Jakarta, Editing by Anand Basu)

*************************************************************** 12:23 STOCKS NEWS INDONESIA-CLSA sees interest returning to coal sector

CLSA Asia Pacific Markets said with the recent rebound in spot Newcastle coal prices and an improving macro picture in China, interest has returned to the Indonesian coal sector.

"As seen in the latest PMI figures and recent equity rally, increasing evidence of a recovery in China and investor positioning supports exposure to the Indonesian coal sector in 1H13. 3Q12 appears to be the bottom of the recent commodity price cycle but the pace of demand recovery and inventory overhang will hold back prices," analysts Jayden Vantarakis and Hendy Soegiarto said in a note on Wednesday.

"However, we caution against chasing leveraged names given CLSA's view of coal prices remaining at US$100/t during 2013."

The research house upgraded its recommendations on top picks PT Perusahaan Tambang Bukit Asam to 'buy' from 'outperform' and Harum Energy to 'underperform' from 'sell'.

Shares of Bukit Asam were down 1.21 percent at 16,350 rupiah while Harum Energy was down 0.78 percent at 6,350 rupiah. The broader index was down 0.15 percent.

1202 (0502 GMT) (Reporting by Andjarsari Paramaditha, Editing by Sunil Nair) *************************************************************** 11:06 STOCKS NEWS INDONESIA-Bina Buana slides on debut

Shares in Indonesian shipping firm PT Pelayaran Nasional Bina Buana Raya Tbk fell as much as 10.86 percent after its trading debut on Wednesday. Bina Buana issued 600 million new shares for its initial public offering, priced at 230 rupiah per share, aiming to raise 138 billion rupiah ($14.27 million). The Indonesian arm of Singapore-listed shipping company Marco Polo Marine Ltd will use the IPO proceedings for the expansion of its offshore oil and gas logistics business. OSK Nusadana Securities Indonesia was the lead underwriter. for the IPO. Bina Buana is the first company to list on the Indonesian stock exchange this year, amid reduced appetite for IPOs due to global economic slowdown. The stock was trading at 205 rupiah with a volume of 41.6 million shares. The Jakarta Composite Index was down 0.11 percent. ($1 = 9,670 rupiah) 1052 (0352 GMT) (Reporting by Andjarsari Paramaditha; Editing by Jijo Jacob)

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