Reuters: Hot Stocks: STOCKS NEWS INDONESIA-Macquarie remains overweight on cement and property sectors

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STOCKS NEWS INDONESIA-Macquarie remains overweight on cement and property sectors Aug 13th 2012, 06:02 Mon Aug 13, 2012 2:02am EDT Macquarie Equities Research kept its 'overweight' rating on Indonesian cement and property sectors, citing higher cement sales volume and utilisation, while it expects the property sector to benefit from the presidential regulation on land acquisition. July cement sales volume was boosted by additional supply from PT Semen Gresik Tbk, which had the highest monthly sales ever due to its new facility in Tuban, East Java while of the other cement producers sales volume were largely unchanged, the research house said. "We expect low volume sales in August due to the Muslim holiday season, but we think the September number should bounce back," Macquarie analyst Felicia Barus said in a note on Monday. Barus also said the regulation, signed on Aug. 7 by the Indonesian president, to implement the land acquisition bill will accelerate infrastructure development and improve property demand and pricing outlook. "The bill is expected to accelerate the infrastructure development by shortening the land clearing time and setting up the land compensation mechanism. Infrastructure development will certainly improve access, which usually has a positive impact on property prices," the report said. Macquarie said its preferred picks were PT Bumi Serpong Damai Tbk and PT Ciputra Development Tbk. By 12:40 a.m. (0540 GMT), the Jakarta Property Index and the Jakarta Infrastructure Index were down 0.40 and 0.51 percent, while the broader Jakarta Composite Index was down 0.15 percent. 1245 (0545 GMT) (Reporting by Andjarsari Paramaditha in Jakarta) **************************************************************** 11:43 STOCKS NEWS INDONESIA-UBS initiates Harum Energy with 'sell' UBS started coverage of PT Harum Energy Tbk with a 'sell' rating and a target price of 5,900 rupiah, saying while Harum is the fastest-growing major Indonesian coal producer and outperformed the sector due to production growth, it has low reserve life that could put a cap on its valuation and should not trade materially above its reserve life. "In the event of unexpected coal price momentum fuelled by global policy easing, we believe Harum could outperform the sector based on: 1) superior volume growth; 2) ongoing reserve upgrades; and 3) M&A activity supported by a strong balance sheet," UBS analyst Andreas Bokkenhauser said in a note on Monday. However, besides earnings risk from coal and fuel price volatility as well as production disruptions from torrential rains, Harum's third-generation Coal Contract of Work offers only partial protection from ongoing regulatory risk. The broker said it sees Harum's production growth exceeding the sector average over the next two years as output increases and expects additional production from a third mine. At 11.39 am. (0411 GMT) the miner's shares were down 2.42 percent at 6,050 rupiah while the broader index was down 0.1 percent. 1139 (0439 GMT) (Reporting by Andjarsari Paramaditha in Jakarta) Link this Share this Digg this Email Reprints

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