Indonesia Stock Exchange review (september 20, 2010)

The JCI opened in the green amidst positive trend across Asian markets and
overnight gains in US markets. The markets continued to trade in the positive
zone in the morning trade, thereafter, as selective heavy-weight stocks
witnessed relatively strong buying. However, a slide was witnessed in late
afternoon trade as markets turned volatile and traded in the red as lack of
strong catalyst triggered profit taking activities. The index lost only 5.2 points or
0.17% to close at 3,099.6.
􀂃 Market breadth was negative as losers outpaced gainers, 73 to 110, while 227
stocks were unchanged. Bank BCA (BBCA, -1.69%), Bank Mandiri (BMRI, -
1.69%), Unilever (UNVR,-0.91%) and Telkom (TLKM, -0.57%) were the leading
contributors to the market decline. Indofood (INDF, +5.46%) extended its gain
ahead of its subsidiary’s IPO and help limit the decline in the JCI. Trading value
lowered to Rp2.7 tn (US$305 mn) with foreign investor bought only a net of
Rp48.6 bn (US$5.4 mn). Meanwhile, the Rupiah slightly declined and breach
9,000/US$ level yesterday.
􀂃 Following yesterday's surprise reversal of fortunes, the market may resume its
downward bias in today's trading session and the announcement of August
inflation tomorrow, which is expected at above 1%, could be used as excused
to sell interest-sensitive stocks. Today,

Three Ways to Invest in Indonesia

Indonesia has the fourth highest population in the world, and it is a republic, with an elected president, and parliament. It is Southeast Asia's only member of OPEC.
Its major products include petroleum, natural gas, textiles, apparel, minerals, palm oil, rice, tea, coffee, spices, and rubber. It is twenty-first in the world in terms of gross domestic product, and fifteenth in the world in terms of GDP by Purchasing Power Parity. In 2005 it had a trade surplus.
Indosat tbk PT (IIT) was founded in 1967. It is a large telecommunications company in Indonesia which trades on the New York Stock Exchange. It has a P/E of 27.6, a P/S of 3.13, and a yield of 3.1%. Its quarterly earnings were up 26%, on a 30% increase in earnings.
MedcoEnergi Internasional TBK PT [PTGIF.PK], is an integrated oil and gas company in the business of exploration, drilling, production and energy production. The company's 2007 first quarter net income increased by 17%.
Pasifik Satelit Nusantara ADR PT [PSNRY.PK], is a satellite communications company, and was the first provider of satellite telecommunications service to Indonesia.
Kalbe Farma Ord PT [PTKFF.PK], manufactures and markets, pharmaceuticals for humans and animals, along with other nutritional products. The stock has a P/E of 22, and a P/S of 2. The company has a market cap of $1.47 billion.
Kawasan Industri Jababeka ORD PT [PTKWF.PK], develops industrial real estate in Indonesia, and occasionally trades in the United States. It was listed in Forbes list of Asia's 200 Best Under A Billion. The stock has a P/E of 14, and a P/S of 3.
Perusahaan Perseroan Perseropt PT Telekomunikasi Indonesia tbk (TLK), also known as TELEKOMUNIKASI INDONESIA, was founded in 1884, and trades on the New York Stock Exchange. It is in the telecommunications business including both fixed wire line and fixed wireless, mobile service, data and Internet services. It has a P/E of 21.4, a P/S of 4.1, and a yield of 2.3%. Its latest quarterly earnings were up 22.8%, but earnings were down 12.1%.
Holcim Indonesia TBK [PTHIF.PK], recently started trading publicly in the U.S. in April of this year. It is a very large cement, and aggregates company which sells to Indonesia’s building, and construction industry. Its net sales increased by 23.8%, and net income went up 94.1%.

"JAKARTA — After years of being known for inefficiency, corruption and instability, Indonesia is emerging from the global financial crisis with a surprising new reputation — economic golden child.

The country’s economy, the largest in Southeast Asia, grew at an annual rate of 6.2 percent in the second quarter of this year, data released Thursday showed. That is an acceleration from 2009, when gross domestic product expanded 4.5 percent.
The stock market hit a record high last week and has been among the best-performing equities markets in Asia this year, rising more than 20 percent since Jan. 1. The country’s currency, the rupiah, has appreciated nearly 5 percent this year against the dollar, among the strongest showings in Asia besides that of the yen.
Foreign direct investment, which was held in check for years after the 1997 economic crisis in Asia, is also returning. The country had 33.3 trillion rupiah, or $3.7 billion, in foreign direct investment in the second quarter of this year, a 51 percent rise from a year earlier, the Investment Coordinating Board in Indonesia said last week. The country is on track to attract more foreign investment this year than it did in 2008, when it lured in $14.87 billion.
Such statistics have some here cautiously saying that the country, a Muslim-majority democracy and one of the world’s most populous countries, could soon merit the kind of attention that investors now lavish on China and India.
“Indonesia is one of the most interesting, most attractive destinations in the world,” said Lanang Trihardian, an analyst at Syailendra Capital, a fund management firm based in Jakarta. “Foreign investors have been flowing to Indonesia from maybe around mid-2009. We are seeing a lot of liquidity coming into Indonesia, and it is mostly going to capital markets, to bonds, to stocks.”"

source: seekingalpha.com