M&A

3 March, 2010

Indonesian Shares Poised To Extend Gains

(RTTNews) - The Indonesian stock market has finished higher now in consecutive trading days, gathering more than 25 points or 1 percent along the way. The Jakarta Composite Index moved above the 2,575-point plateau, and now investors are looking for continued upside at the opening of trade on Wednesday.

The global forecast for the Asian markets is cautiously optimistic, boosted by solid gains in the commodity markets - particularly gold and oil. Steel and telecom stocks also may provide support, while airlines may see some profit taking. The European markets finished broadly higher and the U.S. bourses ended up slightly, and the Asian markets are also forecast to trend to the upside.

The JCI finished modestly higher on Tuesday, riding gains from the financial shares and the resource stocks.

For the day, the index climbed 21.92 points or 0.9 percent to finish at 2,576.59 after trading between 2,554.47 and 2,577.09. Volume was 3.1 billion shares worth 3.2 trillion rupiah. There were 108 gainers and 66 decliners.

Among the gainers, Bumi Resources jumped 6.9 percent, while Telekomunikasi Indonesia added 3.7 percent and Bank Central Asia gained 2.1 percent.

The lead from Wall Street is flat with a touch of upside as stocks rose by slim margins on Tuesday, with late session uncertainty endangering a positive close. Continued merger and acquisition news boosted the markets initially, but mixed auto sales and a lack of first-tier economic data wore down the day's gains. Nonetheless, the major averages all closed in positive territory, adding to Monday's gains.

On the M&A front, CF Industries Holdings, Inc. (CF) said it has offered to acquire Terra Industries Inc. (TRA) for $37.15 in cash and 0.0953 of a share of CF Industries common stock for each Terra share.

The spotlight was also on major automakers as they reported their monthly sales figures for February.

Ford (F) sales surged up by 43 percent versus the same period last year, topping estimates by roughly ten percent. The boost in sales also represented a 22 percent higher mark compared to January. The results were driven by broad based strength for the firm, as sales improved in every product category and for every brand, eclipsing General Motors' sales for the first time in over a decade.

Meanwhile, General Motors reported that its February sales rose 11.5 percent compared with the same period last year but fell well short of the Wall Street estimate of a 24 percent sales spike. The firm also joined rival Toyota Motors (TM) by announcing its own recall this morning, recalling 1.3 million compact cars over a power-steering issue. Toyota, which has recalled of 8.5 million vehicles globally, reported a sales decline of 8.7 percent.

In other news, Minneapolis Federal Reserve president Narayana Kocherlakota remarked that he expects U.S. economic growth to remain subdued as the economy recovers from last year's recession. Speaking before the Allied Executives Business & Economic Outlook Symposium in Minneapolis, Kocherlakota said that the economy still appears to be "stuck in a trough" when considering unemployment.

The major averages wavered in late-session dealing, with the Dow briefly falling into negative territory before recovering for a positive close. The Dow edged up 2.19 points or less than 0.1 percent to 10,405.98, the NASDAQ advanced by 7.22 points or 0.3 percent to 2,280.79 and the S&P 500 rose by 2.60 points or 0.2 percent to 1,118.31.

by RTT Staff Writer