Indonesia's Stock Index Gains Most in 10 Months on Earnings

By Berni Moestafa

Oct. 31 (Bloomberg) -- Indonesia's stock index advanced, set for its sharpest gain in more than 10 months, after PT Bank Rakyat Indonesia reported record earnings and as the bourse widened the price band in which shares can trade.

Bank Rakyat, the nation's second-biggest by market value, rose 19 percent after its results eased concern earnings will slump amid a global credit crisis. PT United Tractors, Indonesia's largest heavy equipment seller, jumped by the 20 percent trading limit as third-quarter profit surged 90 percent.

The Jakarta Composite index added 83.51, or 7.1 percent, to 1,257.37 at the 11:30 a.m. local time-break, set for its biggest gain since Jan. 23. It is headed for a 1 percent gain this week, compared with a 9.6 percent rise in the regional MSCI Asia Pacific Index. Indonesia raised today the limit on stock gains to 20 percent from 10 percent, while limiting drops to 10 percent.

``The earning results show companies aren't as badly hit by the crisis as feared,'' said Fitri Murniawati, who helps manage about $155 million in assets at Jakarta-based PT BNI Securities. ``Stock gains were hampered earlier this week because of the trading band, now investors have more room to buy shares.''

Bank Rakyat rose 19 percent to 3,450 rupiah after reporting a record third-quarter profit of 1.42 trillion rupiah ($129 million). PT Bank Mandiri, the largest financial-services company by assets, jumped 17 percent to 1,520 rupiah as third-quarter profit increased 29 percent to 1.34 trillion rupiah.

Coal Extraction

United Tractors surged 20 percent to 3,150 rupiah. The company's nine-month profit rose 90 percent to 2.09 trillion rupiah as orders for coal-extraction and construction machinery increased. PT Astra International, Indonesia's biggest auto retailer that owns United Tractors, climbed 17 percent to 9,100 rupiah.

PT Indofood Sukses Makmur, the No. 1 instant-noodle maker, added 6.7 percent to 1,120 rupiah. Indofood said profit in the first nine months of the year rose 66 percent to 1.14 trillion rupiah after raising prices and buying a palm oil company.

PT Perusahaan Gas Negara (PGAS IJ), the largest distributor of the fuel, rose 17 percent to 1,430 rupiah. Gas Negara said profit in the first nine months of the year climbed 57 percent to 2.04 trillion rupiah as the company increased the amount of gas it sold to utilities and factories.

To contact the reporter on this story: Berni Moestafa in Jakarta at bmoestafa@bloomberg.net