Reuters: Hot Stocks: STOCKS NEWS INDONESIA-Bakrie Telecom slides on debt fears

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STOCKS NEWS INDONESIA-Bakrie Telecom slides on debt fears Sep 5th 2012, 07:05 Wed Sep 5, 2012 3:05am EDT Shares of Indonesia's mobile operator Bakrie Telecom, dropped as much as 13.14 percent on Wednesday over bondholder concerns about the company's ability to pay its debt o n time. Indonesia Stock Exchange lifted trading suspension this morning, after previously suspending trading in shares and rupiah-denominated bonds of Bakrie Telecom to avoid market speculation as the mobile operator was scheduled to pay bondholders on Tuesday. The CDMA operator said on Tuesday the payment delay was due to the Labor Day holiday in New York on Monday. Of the 650 billion rupiah worth of bonds due on Tuesday, 250 billion were paid, while the remaining would be paid directly from creditors' account to bondholders, it said. "Market sentiment is still negative as it waits to see on how Bakrie Telecom resolves its debt issues with bondholders," said Fadlul Imansyah, a Jakarta-based equity fund manager with CIMB Asset Management. Shares in the Bakrie Group companies, which is controlled by the family of Aburizal Bakrie, a heavy-weight contender for the presidency in 2014, have fallen sharply in September over the parent's debt concerns. Energy firm PT Energi Mega Persada has plunged 20.65 percent, while palm oil company PT Bakrie Sumatera Plantation has lost 11.28 percent and Asia's largest thermal coal exporter, PT Bumi Resources, has dropped 5.7 percent in September. At 01.30 p.m. (0630 GMT), shares of the mobile operator were down 8.76 percent at 125 rupiah. The broader Jakarta composite index was down 0.33 p e rcent. 1330 (0630 GMT) (Reporting by Andjarsari Paramaditha in Jakarta) **************************************************************** 11:57 STOCKS NEWS INDONESIA-UBS cuts Indofood CBP to neutral UBS downgraded PT Indofood CBP Sukses Makmur Tbk to 'neutral' from 'buy,' and said higher wages and raw material costs could take a toll on the packaged-food maker's margins. Wages were up 48 percent year-on-year in the second quarter, and an increase in flour prices could also impact the coming quarters, UBS analyst Bonny Setiawan wrote in a note on Wednesday. "We expect noodle volume growth to slow in Q412 and think costs will rise," Setiawan said. The brokerage maintained its 7,000 rupiah target price on the stock and said the market has high expectations from the newly formed joint venture with Japanese beverage group Asahi . Earlier in July, Asahi entered into a partnership with Indofood CBP worth up to 2 trillion rupiah ($213.1 million) to make non-alcoholic drinks, aiming to tap growth of more than double by 2020. "The dairy business will struggle to find its competitive edge, and uncertainties on the JV linger," the brokerage said. At 11.55 a.m. (0455 GMT), shares of the company were down 0.76 percent at 6,500 rupiah, while the broader index was down 0.41 percent. 1156 (0456 GMT) (Reporting by Andjarsari Paramaditha) Link this Share this Digg this Email Reprints

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