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

By Berni Moestafa

Oct. 31 (Bloomberg) -- Indonesia's stock index advanced the most 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 after a record third-quarter profit.

The Jakarta Composite index added 82.84, or 7.1 percent, to close at 1,256.70, its biggest gain since Jan. 23. It has gained 1 percent this week compared with a 7.6 percent rise in the regional MSCI Asia Pacific Index. Indonesia increased today the limit on stock gains to 20 percent from 10 percent, while restricting drops to 10 percent.

``The earnings 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 20 percent to 1,560 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 third-quarter profit gained 59 percent to a record 881.2 billion rupiah as higher coal prices bolstered demand for its excavators and the company's fuel-extraction services.

PT Astra International, Indonesia's biggest auto retailer that owns United Tractors, added 20 percent to 9,350 rupiah. The company said its nine-month profit rose 61 percent from a year earlier to 7.37 trillion rupiah.

PT Indofood Sukses Makmur, the No. 1 instant-noodle maker, added 3.8 percent to 1,090 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, the largest distributor of the fuel, rose 15 percent to 1,400 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.

Elsewhere PT Bakrie Telecom, the mobile-phone unit of Indonesia's biggest investment company, PT Bakrie & Brothers, fell 1.5 percent to 66 rupiah. The company denied a Bisnis Indonesia newspaper report yesterday that said the Sinar Mas Group may buy a stake in Bakrie Telecom.

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