JCI High On Reports Of Big Bank Profits

Indonesian shares ended 3 percent higher on Wednesday, lifted by three big banks whose first quarter financial results surpassed expectations.
The Jakarta Composite Index advanced 48.27 points to close at 1,644.19. The blue-chip LQ-45 index rose 9.81 points, or 3.1 percent, to end at 325.02.
“The major factor boosting share prices were reports of first-quarter financial results,” said Purwoko Sartono, an analyst at Panin Sekuritas.
Bank Central Asia, the second largest bank in terms of assets, posted a 41.8 percent rise in net profit to Rp 1.6 trillion ($148.8 million) in the first quarter from a year earlier.
Bank Negara Indonesia, the fourth largest bank, saw its net profit soar 315 percent to Rp 635 billion from Rp 153 billion in the year-earlier period.
Bank Mandiri, the country’s largest bank in terms of assets, posted a 0.7 percent rise in net profit to Rp 1.4 trillion from Rp 1.39 trillion a year earlier. Higher provisions to anticipate rising soured loans had cut Mandiri’s net profit.
Elsewhere, Asian stocks were also up for the first time in three days on signs that earnings are rising region-wide despite swine flu worries and the continuing world economic crisis.
“There are some very small bright spots emerging,” said Chris Hall, who helps to oversee about $2 billion at the Australia-based Argo Investments, Bloomberg reported. “People are possibly feeling a bit better that banks and governments are throwing a lot of money at the problem.”
The MSCI Asia Pacific excluding the Japan Index rose 2.3 percent to 268.89 as of 4:04 p.m. Hong Kong time.
Santikno Suherman, an analyst at Batavia Prosperindo, noted that banking and property stocks led the market because investors were expecting Bank Indonesia to cut the BI rate by as much as 50 basis points from the current 7.5 percent due falling inflation.