STOCKS NEWS INDONESIA-Credit Suisse starts Garuda Indonesia with 'outperform'

Credit Suisse started coverage of PT Garuda Indonesia Tbk

with an 'outperform' and a target price of 900 rupiah, saying the national flag carrier's d i scounted stock price, organic revenue growth and cost cuts make the stock attractive.

"Management and equipment-led cost cuts provide adequate appeal and compensate for increasing competition and rising balance sheet leverage," Credit Suisse analysts Timothy Ross and Leonard Huo said in a note on Monday.

Robust market growth and a segmented product mix should allow Garuda to expand its yield while holding loads steady.

The analysts anticipate a decline in 2014 estimated net profit after tax as rising ownership costs offset an improvement in underlying earnings.

The state-controlled airline's shares were up 6.45 percent at 660 rupiah, while the broader index was down 0.65 percent.

1340 (0640 GMT) (Reporting by Andjarsari Paramaditha in Jakarta; Editing by Prateek Chatterjee) (( 21 3199 7170)(Reuters Messaging:


13:11 STOCKS NEWS INDONESIA-CLSA cuts Ace Hardware to 'outperform'

CLSA Asia Pacific Markets downgraded Indonesian appliance retailer PT Ace Hardware T bk to 'outperform' from 'buy', saying higher rentals, salary and advertising costs would impact margins despite strong first-half earnings.

The brokerage also slashed its target price to 7,000 rupiah from 7,300.

"The tools retailer will need to spend and invest aggressively to defend its first-mover advantage against incoming and ambitious competitors. Factoring these, we trim our 2012 earnings forecasts by about 5 percent," CLSA analyst Jane Suhardjo wrote in a note on Monday.

While the retailer has benefited from Indonesia's expanding middle class and housing boom, competitive threats are intensifying, it said. Therefore, it has been aggressively spending and investing to defend its position against competition from Pongs and the planned entry of Ikea in 2014, the note added.

Shares of Ace were up 3.25 percent at 6,350 rupiah. The broader index was down 0.65 percent.

1253 (0553 GMT)

(Reporting by Andjarsari Paramaditha in Jakarta; Editing by Prateek Chatterjee) (( 21 3199 7170)(Reuters Messaging:


12:33 STOCKS NEWS INDONESIA-Indonesia's Provident Agro plans $31 mln October IPO

PT Provident Agro Tbk, an Indonesian palm oil company, is looking to raise up to 296.62 billion rupiah ($31 million) through an initial public offering (IPO) in October, the company said in a newspaper announcement on Monday.

The company aims to sell 659.15 million new shares, equal to 13.4 percent of its enlarged capital, at 450 rupiah per share, the statement said.

Provident Agro manages 11 palm oil plantations and three palm oil factories in Sumatera and Kalimantan with PT Saratoga Sentral Business and PT Provident Capital Indonesia, with each of the partners holding a 43.3 percent stake.

PT Indo Premier Securities and PT DBS Vickers Securities Indonesia are the underwriters for the IPO.

1154 (0454 GMT)

(Reporting by Andjarsari Paramaditha in Jakarta) (( 21 3199 7170)(Reuters Messaging:


10:41 STOCKS NEWS INDONESIA-Trading in Indonesia Air Transport suspended

The Indonesian stock exchange suspended trading in the shares of PT Indonesia Air Transport after the stock's price nearly tripled in the last two weeks.

"The stock exchange needs to suspend trading of PT Indonesia Air Transport shares on Oct. 1 to cool down the price," the exchange said in a statement on Monday.

Shares of the air transport service provider soared to their highest in five years on Sept. 24 at 137 rupiah, from a year-low of 50 rupiah on Sept. 13. They closed at 122 rupiah on Friday.

The broader Jakarta Composite Index was down 1.05 percent at 10.15 a.m. (0315 GMT)

1017 (0317 GMT)

(Reporting by Andjarsari Paramaditha)

(( 21 3199 7170)(Reuters Messaging: