Bank Negara, Borneo Lumbung, Rakyat: Indonesia Equity Preview

Shares of the following companies may have unusual moves in Indonesian trading. Stock symbols are in parentheses, and share prices are as of the previous close.

The Jakarta Composite index fell 0.8 percent to 3,487.61.

Energy companies: Crude oil for March delivery jumped the most since September 2009, rising 4.3 percent to $89.34 a barrel in New York Jan. 28. The contract was at $89.95 a barrel in after-hours trading as of 8:08 a.m. Jakarta time.

PT Medco Energi Internasional (MEDC IJ), Indonesia’s biggest listed oil company, slid 0.8 percent to 3,200 rupiah and PT Energi Mega Persada (ENRG IJ), the second largest, declined 2.7 percent to 110 rupiah.

PT Bakrie Telecom (BTEL IJ): The mobile-phone operator said its unit Bakrie Telecom Pte issued $130 million of bonds at a yield of 11.5 percent, due in 2015, to pay debt and for business expansion. The stock dropped 2.2 percent to 220 rupiah.

PT Bank Negara Indonesia (BBNI IJ): Indonesia’s third- biggest state-owned bank received a $150 million credit line from U.S. Export-Import Bank, which it will use to fund financing for Indonesian importers of U.S. goods, said Krishna Suparto, director of corporate banking at Bank Negara. Bank Negara declined 2.2 percent to 3,350 rupiah.

PT Bank Rakyat Indonesia (BBRI IJ): Indonesia’s second- largest bank by assets was lowered to “neutral” from “outperform” by Credit Suisse Group AG, which cited the bank’s high loan-to-deposit ratio relative to its peers and the “limited potential” to benefit from any increases in interest rates. The brokerage reduced its share-price estimate to 5,900 rupiah from 6,750 rupiah, according to a report by Teddy Oetomo. Bank Rakyat dropped 2.9 percent to 5,100 rupiah.

PT Borneo Lumbung Energi & Metal (BORN IJ): The producer of hard-coking coal allocated $198 million for capital expenditure this year to buy production equipment, Investor Daily Indonesia reported, citing Geroad Jusuf, corporate secretary at the company. Borneo Lumbung targets sales to increase 94 percent to 3.2 million tons this year from 2010, the report said. The stock declined 3.6 percent to 1,590 rupiah.

PT Bumi Resources (BUMI IJ): The company’s unit, PT Enercoal Resources, bought back $300 million of guaranteed convertible bonds due in 2016, Investor Daily Indonesia reported, citing Bumi director Dileep Srivastava. Bumi, the nation’s largest coal producer, slumped 5 percent to 2,875 rupiah.

PT Indo Tambangraya Megah (ITMG IJ): The unit of Thailand’s largest coal producer Banpu Pcl was raised to “buy” from “hold” at Citigroup Inc., which said its valuations are “attractive” after a so-called share price correction and its export volume is “less affected” by potentially lower domestic coal selling prices. Indo Tambangraya fell 2.8 percent to 48,000 rupiah.

PT Perusahaan Gas Negara (PGAS IJ): Indonesia’s biggest gas distributor allocated $250 million for capital expenditure this year, Bisnis Indonesia reported, citing Gas Negara Finance Director M. Riza Pahlevi Tabrani. Gas Negara gained 1.2 percent to 4,175 rupiah.

PT Tambang Batubara Bukit Asam (PTBA IJ): The state coal producer was raised to “hold” from “sell” at Citigroup, which cited its “less demanding” valuations after a so-called share-price correction and its “robust” medium- and long-term production growth. Bukit Asam slid 0.7 percent to 20,150 rupiah.

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

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

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