July 8, 2013 / 8:22 AM / 6 years ago

STOCKS NEWS INDONESIA-Construction firms fall on possible budget cut plan

The Indonesian property index fell as much as 5.4 percent to 425.629 on Monday on worries that the parliament might cut budget spending for the public works and transportation ministries, dragging the broader Jakarta Composite Index down 3.16 percent.

The Indonesian parliament had approved only 68.7 trillion Indonesian rupiah ($6.91 billion) or 60 percent from the proposed budget of 110 trillion rupiah for both the ministries.

“If materialized, it may pose significant risk to contractors due to their high exposure to government infrastructure spending,” Jakarta-based Mandiri Sekuritas analyst Handoko Wijoyo said on Monday.

“Yet, we believe that it is too early to determine any budget cut at the moment as the discussion is at very early stage. In addition, our channel check suggests that infrastructure spending next year should be improving on the back of lower subsidy budget.”

Shares in state-controlled contractors Adhi Karya, PT Pembangunan Perumahan, Waskita Karya and Wijaya Karya fell more than 4.6 percent on Monday.

The Jakarta property index has fallen 24.7 percent from its year-high in May.

1451 (0751 GMT) (Reporting by Andjarsari Paramaditha in Jakarta, ; Editing by Supriya Kurane)

*************************************************************** 11:02 STOCKS NEWS INDONESIA-Mestika, Multipolar Tech and Victoria soar on debut

Shares in three companies that listed on the Indonesian bourse on Monday gained more than 18 percent on their trading debut.

Lender Bank Mestika Dharma’s initial public offering of 430 million shares raised 593 billion rupiah ($59.64 million). The shares were priced at 1,380 rupiah each.

Lippo Group controlled IT firm Multipolar Technology’s IPO raised 180 billion rupiah from 375 million shares or 20 percent of its enlarged capital. The shares were priced at 480 rupiah each. Ciptadana was the underwriter for both these IPOs.

Financial holding company Victoria Investama’s IPO raised 150 billion rupiah from 1.2 billion shares or 34.2 percent of its enlarged capital. The shares were priced at 125 rupiah each. AAA Securities was the underwriter for the IPO.

Indonesia has 21 companies listed on the Indonesian stock exchange this year, amid reduced appetite and downsizing capital raised due to global market volatility and pricey valuations.

Mestika Dharma shares rose 12.3 percent to 1,550 rupiah, Multipolar Technology jumped 50 percent to 720 rupiah and Victoria Investama soared 68 percent to 210 rupiah.

The Jakarta Composite Index was down 1.95 percent. ($1 = 9,942.5 rupiah) 1040 (0340 GMT) (Reporting by Andjarsari Paramaditha; Editing by Supriya Kurane)

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