Financial Sector Lifts JCI to More Gains

By webadmin on 09:00 pm Mar 31, 2011
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Indonesia’s top banks continued announcing profits in their earning reports, boosting the financial sector 2.75 percent on Thursday and helping the Jakarta Composite Index advance for a second straight day.

“Investors were hunting finance stocks as some big players in the field posted significant gains that signaled prospective growth in Indonesia’s economy” said Hendri Effendi, an analyst at Citi Pacific Securitas.

“The local market has bullish potential in the short term with a little profit-taking along the way.”

The JCI gained 37.70 points, or 1.04 percent, to close at 3,678.67. About 4.4 billion shares worth Rp 7.3 trillion ($840 million). Gainers topped decliners 119 to 93.

Bank Rakyat Indonesia, the nation’s second-biggest lender, gained 6.5 percent to Rp 5,750. It said its 2010 net income jumped 58 percent to Rp 11.5 trillion. Bank Mandiri, Indonesia’s biggest bank by assets, rose 4.6 percent to Rp 6,800 after it announced its 2010 net income rose 29 percent to Rp 9.22 trillion.

Bank Central Asia, the nation’s largest lender by market value, gained 1.5 percent to Rp 6,950. It said its 2010 net income increased 25 percent to Rp 8.52 trillion. Bank Tabungan Negara, a state mortgage lender, rose 4.4 percent to Rp 1,680. Its 2010 net income rose 87 percent to Rp 916 billion.

The rupiah strengthened to trade at 8,705 against the US dollar as the market closed on Thursday, from 8,715 on Wednesday.

“The central bank is allowing the rupiah to appreciate to fight inflation instead of increasing interest rates,” said Gundy Cahyadi, an economist at Oversea-Chinese Banking Corp. “Higher inflation may be positive for the rupiah.”