Yohanes Obor & Bloomberg

The price of shares in PT Medco Energi Internasional, the country’s biggest public oil company, fell 2.8 percent to Rp 2,625 on Monday. The Jakarta Composite Index gained 0.5 percent. (Bloomberg Photo)

Astra Group Companies Lead Indonesian Shares Gain

The Indonesian stock market reversed morning losses to post a moderate gain in light trading on Monday, with gains in Astra group companies offsetting losses in the broader market.

The Jakarta Composite Index rose 11.33 points, or 0.5 percent, to 2,406.43. Some 2.85 billion shares worth Rp 2.6 trillion ($275.6 million) changed hands. Decliners outnumbered gainers 91 to 78.

“In thin trading volume, gains in holding company PT Astra International prompted buying in other stocks in the Astra group, which supported the index’s gain,” said Frederik Daniel Tanggela, an analyst at PT Sucorinvest Central Gani.

Frederik said the rupiah’s gains against the dollar spurred the buying in these stocks. Astra group is one of the country’s largest automotive distributors. Other members of the group specialize in financial services, agribusiness, mining and energy and information technology. A stronger rupiah is likely to help parent company Astra International’s automotive business.

Astra International rose 4.1 percent, while palm oil producer PT Astra Agro Lestari gained 1.6 percent.

The financial sector, which services debt in dollars, also supported the JCI, while mining and infrastructure stocks declined.

Frederick said the market would struggle to find direction this week, with selling in large, market-leading stocks perhaps dominating the next few days, creating a bearish tone overall.

The rupiah rose to its strongest level against the dollar in almost three weeks on speculation that prolonged near-zero interest rates in the US would fuel demand for riskier, higher-yielding assets, helping emerging markets such as Indonesia attract funds. The rupiah rose 0.3 percent to 9,414 at stock market’s close on Monday, compared with 9,447 on Friday.

Diversified energy services company PT United Tractors climbed 4.7 percent to Rp 15,700, its sharpest gain since Oct. 6. The company had its target price raised to Rp 19,600 by PT Mandiri Sekuritas, which cited an improving outlook for sales of heavy equipment.

Among banking stocks, PT Bank Negara Indonesia rose 1.1 percent to Rp 1,910, while PT Bank Mandiri gained 1.6 percent to Rp 4,700.

Blue chip drug maker PT Kalbe Farma increased 2.3 percent to Rp 1,310, while cement maker PT Indocement Tunggal Perkasa rose 1.3 percent to Rp 11,950.

Among the losers were the Bakrie group’s PT Medco Energi Internasional, which fell 2.8 percent to Rp 2,625. Coal miner PT Bumi Resources declined 1.1 percent to Rp 2,300.