September 13, 2012 / 7:56 AM / in 5 years

STOCKS NEWS INDONESIA-UBS cuts United Tractors target price

UBS Investment Research slashed its target price on shares of PT United Tractors Tbk to 28,000 rupiah from 38,000 rupiah, while lowering its earnings estimates on the heavy equipment manufacturer.

“We acknowledge that UNTR’s heavy equipment sales volume has been negatively affected by weak coal prices and heightened competition,” UBS analyst Felicia Tandiyono wrote in a note on Thursday.

However, competition should recede starting October this year, added Tandiyono, while maintaining its ‘buy’ rating on the stock.

UBS lowered its 2012 earnings estimate to 1,633 rupiah per share from 1,751 rupiah and 2013 earnings view to 1,680 rupiah per share from 2,024 rupaih.

Shares of the company were up 1.47 percent at 20,750 rupiah, while the broader index was up 0.08 percent. 1445 (0745 GMT) (Reporting by Andjarsari Paramaditha in Jakarta)

**************************************************************** 12:36 STOCKS NEWS INDONESIA-Nirvana Development soars on debut Shares in PT Nirvana Development Tbk, an Indonesian property firm, gained as much as 69.5 percent after its trading debut on Thursday.

Nirvana was the fifteenth company to list on the Indonesia Stock Exchange this year. Its IPO was priced at 105 rupiah a share.

The real estate developer aims to raise up to 630 billion rupiah ($65.84 million) from the IPO. Half of the proceeds will be used for debt payment, while the rest will be for business expansion.

PT Andalan Artha Advisindo Sekuritas were the underwriters for the IPO. The stock was trading at 178 rupiah with 20.7 million shares traded. The Jakarta Composite Index was down 0.10 percent.

1224 (0524 GMT) (Reporting by Andjarsari Paramaditha in Jakarta)


12:03 STOCKS NEWS INDONESIA-XL Axiata shares fall on Etisalat stake sale

Shares of Indonesia’s third largest mobile operator XL Axiata dropped as much as 5.2 percent after its second-largest shareholder, Etisalat, sold about $510 million worth Of stock. Etisalat, the United Arab Emirates’ biggest telecommunications company, sold 775 million Axiata shares at 6,300 rupiah each, putting the deal at 4.88 trillion rupiah ($510.03 million), according to a term sheet of the offering seen by Reuters on Thursday. In March, Etisalat was aiming to sell its entire 13.29 percent stake in XL Axiata to raise between $600 to $700 million this year, after failing to expand its partnership with XL Axiata’s major shareholder, Malaysia’s Axiata Group. “It is common to sell on discount price, Etisalat had both capital and dividend gain from XL Axiata for five years. Maybe Etisalat want to cash it out and invest in another opportunity. But market seems to adopt it as negative sentiment,” said Akhmad Nurcahyadi, a Jakarta-based BNI Sekuritas equity analyst.

At 11.12 am. (0450 GMT) the stock was trading down 2.99 percent at 6,500 rupiah with 21.0 million shares traded, the second highest turnover on the Indonesian stock exchange. The Jakarta Composite Index was down 0.01 percent. 1156 (0456 GMT) ($1 = 9,568 rupiah) (Reporting by Andjarsari Paramaditha)

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