JCI Gains for Fifth Day on Earnings Expectations
Jakarta Market RoundupFrancezka Nangoy
Indonesia’s benchmark stock index rose for the fifth day on Thursday as the earnings reporting season for local companies kicks off.
The Jakarta Composite Index gained 14.56 points, or 0.4 percent to 4,096.19, extending a four-day, 2.4 percent advance. The measure closed at its highest since May 3. About 2.83 billion shares valued at Rp 4.68 trillion ($94 million) changed hands. Gainers beat decliners by 125 to 99. Foreign investors bought Rp 402.9 billion more in shares than they sold.
“Indonesian listed companies are expected to post good earnings,” Edwin Sebayang, head of research at MNC Securities, said in a note to clients after the market’s close. He said the earnings season was started well by several companies, and he was positive that the average earnings in Indonesian companies can grow by 25 percent to 27 percent on average in the second quarter compared to the same period last year.
The finance sector led the JCI’s gain with a 0.9 percent advance as some big banks posted positive earnings growth and on investors’ expectations that other banks will follow suit. Bank Rakyat Indonesia, the second-largest lender by asset, gained 0.8 percent to Rp 6,650, while rival Bank Central Asia gained 0.7 percent to Rp 7,800. The two banks are expected to report their earnings in the coming week.
Media Nusantara Citra, the largest broadcasting company in Indonesia, gained 3.3 percent to Rp 2,325 after reporting 41 percent growth in first-half earnings. Its affiliate, Global Mediacom, rose 0.6 percent to Rp 1,700 as net income grew 23 percent, the company posted on the IDX on Thursday.
Astra Agro Lestari, the largest agribusiness producer, dropped 1.3 percent to Rp 23,450 after reporting its sales volume in the first half rose 12 percent, but the value of sales only increased 6 percent because of the lower price of crude palm oil.