Reuters: Hot Stocks: STOCKS NEWS INDONESIA-Citi bullish on Indonesia property sector

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STOCKS NEWS INDONESIA-Citi bullish on Indonesia property sector Aug 1st 2012, 07:41 Wed Aug 1, 2012 3:41am EDT Citi Research said it remained bullish on Indonesia's property market, backed by strong first-half results that showed positive trends in the sector. Demand for both residential and industrial estates remains robust and there is no signal of slowing down, Citi said. "We maintain our bullish stance on the Indonesian property sector due to structural changes in the mortgage market for landed residential, and rising investments for industrial estates," it said in a note on Wednesday. First-half results were strong with net profit growing 83 percent from last year and accounting for 54 percent of Citi's full-year forecast, while marketing sales rose 48 percent year-over-year, the brokerage said. Citi said its preferred picks were PT Bekasi Fajar Industrial Estate Tbk and PT Surya Semesta Internusa Tbk for industrial plays and PT Bukit Serpong Damai Tbk, PT Summarecon Agung Tbk and PT Sentul City Tbk for residential. Indonesian banks continued to disburse loans for mortgages and the big four banks' exposure to mortgages rose 44 percent from last year, with the affordability level growing by 75 percent in the past three years, report said. "We continue to be positive on middle-market residential and industrial." By 2:15am (0715 GMT), the Jakarta Property Index was down 0.17 percent, while the broader Jakarta Composite Index was down 0.46 percent. 1417 (0717 GMT) (Reporting by Andjarsari Paramaditha in Jakarta) **************************************************************** 12:32 STOCKS NEWS INDONESIA-Consumer goods sector set for slow growth - S&P Indonesian consumer goods companies are likely to see growth slowing down over the next three years due to lower revenue growth and slower improvements in profitability, Standard & Poor's said in a report on Wednesday. Good economic growth prospects, moderately lower inflation risk and rising disposable incomes in Southeast Asia's biggest economy are likely to support growth in the consumer goods sector, according to the report. The report, however, says the pace of growth has slowed down over the past two years. "Relentless capacity expansion and increasing competitive pressure could reduce the ability of market participants to raise prices if raw material prices increase. This will affect margins," said S&P credit analyst Xavier Jean. "Capacity expansion to defend market share could also lower free operating cash flows for rapidly growing companies and moderate any improvement in credit quality." The report is based on a review of the financial performance of the largest 25 listed Indonesian companies in the branded consumer nondurables, retailing, and animal feed, breeding and farming subsectors. By 12:02am (0502 GMT), the Jakarta Consumer Index was down 2.11 percent, the biggest drop across sectors, while the broader Jakarta Composite Index was down 0.66 percent. For a related story, click 1202 (0502 GMT) (Reporting by Andjarsari Paramaditha in Jakarta) Link this Share this Digg this Email Reprints

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