October 18, 2012 / 8:16 AM / 5 years ago

STOCKS NEWS INDONESIA-Hero Supermarket soars on profit jump

Shares in Indonesian retailer PT Hero Supermarket surged as much as 21.89 percent on Thursday after it reported nine-month earnings.

Net income rose 18 percent to 222 billion rupiah ($23.19 million) in January-September over the same period last year, the supermarket chain said in a statement to the stock exchange.

“We are excited that Hero is bringing the first IKEA to the Indonesia people in 2014. Store expansion has so far progressed according to plan...” Chief Executive Philippe Broianigo said in the statement.

In March, Hero won rights to franchise Swedish furniture giant IKEA stores in Indonesia to tap booming domestic consumption from an emerging middle class in Southeast Asia’s biggest economy

At 03.11pm (0811 GMT), the stock was up 16.79 percent at 4,000 rupiah, while the broader Jakarta Composite Index was up 0.25 percent.

1512 (0812 GMT)

($1 = 9,574 rupiah)

(Reporting by Andjarsari Paramaditha,; Editing by Subhranshu Sahu)

**************************************************************** 14:54 STOCKS NEWS INDONESIA-CIMB initiates Citra Marga with ‘outperform’

CIMB Equity Research initiated its coverage of toll operator PT Citra Marga Nusaphala Persada Tbk with an ‘outperform’ rating and a target price of 3,100 rupiah per share, saying that the company is rejuvenated under a new leadership and should improve execution and boost growth.

“Under four key controlling shareholders, restructuring has been swift, focus is returning and execution has improved, evidenced by the quick pick-up in land acquisition in the Depok-Antasari concession,” CIMB Equity analysts Lydia Toisuta and Linda Lauwira wrote in a note on Thursday.

“Post debt restructuring in 2009 and a series of write-offs, balance sheet risk has shrunk sharply. Interest cost should fall,” the note added.

The imminent bond issuance would be a test of its risk profile, it said, adding that Citra Marga is Indonesia’s largest private toll operator and has pure exposure to the rapid growth in urban traffic.

The road constructor’s stock was up 5.75 percent at 2,300 rupiah, while the broader index was up 0.16 percent.

1430 (0730 GMT)

(Reporting by Andjarsari Paramaditha,; Editing by G.Ram Mohan)

**************************************************************** 13:42 STOCKS NEWS INDONESIA-Bank Tabungan Negara surges on profit jump

Shares in Indonesian lender PT Bank Tabungan Negara rose 7.53 percent on Thursday after it reported higher-than-expected nine-month earnings. The state-owned bank’s Jan-Sept net profit was 1.02 trillion rupiah ($106.54 million), an increase of 45.1 percent over the same period last year, it said in a statement. “Going into 4Q12, we expect loan growth to accelerate driven by subsidised and non-subsidised loans,” Deutsche Bank said in a note on Thursday. The recently amended subsidised mortgage scheme should boost lending to 58,000 units, Deutsche Bank said. “Potential 17,000 non-subsidised mortgage migration to subsidised mortgage could release liquidity for BBTN; which in turn could enhance growth,” the research house said.

At 12.54pm (0554 GMT) the stock was up 6.85 percent at 1,570 rupiah with a turnover of 5.6 million shares, while the broader Jakarta Composite Index was up 0.30 percent.

1255 (0555 GMT)

($1 = 9,574 rupiah) (Reporting by Andjarsari Paramaditha,; Editing by G.Ram Mohan)

**************************************************************** 11:44 STOCKS NEWS INDONESIA-More progress needed for Indonesia, Philippines to make investment grade-S&P

Both Indonesia and the Philippines have some weaknesses to overcome before they break into the investment-grade rating category but are making steady progress, Standard & Poor’s Ratings Services said in a report.

“The positive outlook on Indonesia recognizes ongoing improvement in the government’s balance sheet and the country’s income metrics. A modest improvement in the country’s political and policy dynamics, combined with Indonesia’s other credit attributes, could lead to an upgrade,” credit analyst Agost Benard said on Thursday. The stable outlook on the Philippines indicates that risks to the ratings are balanced, S&P said. “The Philippines has narrowed its fiscal deficits, lessened its reliance on foreign savings, and rationalised the public sector. A more conducive political setting has replaced the turbulent and obstructionist environment that prevailed for well over a decade.” Indonesia faces key rating constraints due to the perception that reforms have stalled due to a lack of policy initiatives. The abandonment of a planned electricity tariff rise, inability to cut fuel subsidies and a rising trade deficit have added to this view, it said.

A positive outlook on the Indonesia rating suggests at least a one-in-three chance of an upgrade, S&P said, adding there is more upward than downward pressure on the rating.

At 11.41 a.m (0441 GMT) the Indonesian index was up 0.32 percent, w hile the Philippines index was up 0.06 percent.

1143 (0443 GMT)

(Reporting by Andjarsari Paramaditha,; Editing by Sunil Nair) **************************************************************** 10:59 STOCKS NEWS INDONESIA-StanChart cuts stocks outlook to ‘underweight’

Standard Chartered Equity Research lowered its outlook on the Indonesian equity market to ‘underweight’ from ‘neutral’ citing concerns over lower corporate margins as food prices rise and commodity prices remain under pressure. “We forecast this trend to continue and recommend investors switch away from Indonesia in favour of the Philippines, which we believe is only halfway through the same four-year re-rating process that Indonesia experienced between 2006 and 2010,” analysts Clive McDonnell and Benjamin Wong said in a note on Thursday. Investors have been steadily decreasing exposure to the Indonesian market as they look to reallocate to markets with lower valuation risk as recovery expectations revive in Asia, the research unit said.

Standard Chartered also cut its Jakarta Composite Index 12-month target to 4,400 from 4,500. At 10.55 a.m (0355 GMT) the Indonesian index was up 0.28 percent, wh ile the Philippines index was up 0.11 percent.

1057 (0357 GMT) (Reporting by Andjarsari Paramaditha, Editing by Anupama Dwivedi)

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