Indonesian Stocks Snap Three-Day Drop as Astra, Telkom AdvanceHarry Suhartono
Indonesian stocks rebounded for the first time in four days, as PT Astra International climbed the most in two weeks after data showed vehicle sales in the country advanced last month.
The benchmark Jakarta Composite Index rose 1.1 percent to 4,837.38 as of 11:01 a.m. local time, snapping a three-day, 1.8 percent slump. The gauge is heading for its steepest increase since March 6. Astra, Indonesia’s largest company by market value, rose 1.3 percent. PT Telekomunikasi Indonesia, the nation’s biggest telephone company, added 2.8 percent. The two stocks accounted for almost a third of the index’s gain.
“The rebound happened across the board, led by Telkom Indonesia,” John Teja, a director at PT Ciptadana Securities, said by phone. “But it was just a small rebound. The market still needs to consolidate as it has gained so much this year.”
The Jakarta Composite surged 12 percent this year, and is valued at 19.1 times reported earnings. It traded at 19.3 times profit on March 8, the highest level since December 2010.
Indonesia’s domestic car sales gained to 103,284 units in February from 96,705 units in the previous month, according to data compiled by Bloomberg. Motorcycle sales rose to 649,434 units last month compared to 646,082 in January.