Jakarta Market Roundup: Led by Palm Oil Stocks, JCI Rises Amid Higher Commodity Prices

Francezka Nangoy

Indonesia’s benchmark stock index rose for a second day on Monday, led by palm oil firms as crude palm oil prices climbed.

The Jakarta Composite Index gained 27.79 points, or 0.7 percent, to 4,047.47, extending Friday’s 0.9 percent advance. About 2.81 billion shares valued at Rp 3.67 trillion ($389 million) changed hands on the Indonesia Stock Exchange.

Gainers beat decliners 147 to 90. Foreign investors bought Rp 158.2 billion more in shares than they sold.

Edwin Sebayang, head of research at MNC Securities in Jakarta, said in a note to clients that Indonesian stocks got a boost on the strong rebound of commodity prices on Friday at a time when the worsening global economic outlook led investors to expect more stimulus.

On the IDX, the index made up of agribusiness companies gained 0.9 percent after crude palm oil futures in Malaysia rose 1.6 percent on Monday, extending the 1.5 percent gain on Friday. Astra Agro Lestari, the largest palm oil producer by market value, rose 1.1 percent to Rp 23,550. London Sumatra Indonesia, a crude palm oil producer, added 1.7 percent to Rp 2,975.

Timah, the biggest tin producer in Indonesia, rose 2.1 percent to Rp 1,450 as tin prices rebounded on the London Metal Exchange on Friday after a two-day decline.

The financial sector gained 1 percent as analysts said they expected banks to report positive earnings result for the first half on strong lending growth. Kim Eng Securities said in a note to clients on Monday that Bank Mandiri, the largest bank by assets, and Bank Central Asia, the third-largest, had loan growth in the first half higher than the industry average. Bank Central Asia gained 2 percent to Rp 7,600.

The rupiah strengthened slightly at 9,478 per dollar, up from 9,480 on Friday.