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STOCKS NEWS INDONESIA-CLSA sees lower coal sector earnings, equity valuations

CLSA Asia Pacific Markets sees a further downside risk to consensus earnings estimates in the Indonesian coal sector and advises investors to remain underweight and avoid chasing momentum.

"Despite market optimism, Newcastle thermal benchmark coal prices have trended down to $84/tonnes. Equity valuations are likely to deflate back to fundamentals if no price recovery materialises," CLSA analysts Jayden Vantarakis and Hendy Soegiarto said in a note on Wednesday.

"The sector will face year on year earnings declines in FY13 as Average Selling Prices catch up with declined benchmark pricing. Chinese domestic prices have remained flat and at equilibrium with the seaborne price," the analysts said.

CLSA's preferred stocks are PT Indo Tambangraya Megah

and PT Bukit Asam as both miners have cashed up balance sheets, are returning capital to shareholders and exhibit good levels of governance.

The research house lowered its rating on PT Harum Energy

to 'sell' from 'underperform' and cut its target price to 5,300 rupiah per share from 5,800, saying it expects the miner's short reserve life to weigh on valuations.

At 13.30 a.m (0630 GMT), the Jakarta Mining Index was down 1.75 percent, while the broader Jakarta Composite Index

was 0.08 percent lower. 1331 (0631 GMT)

(Reporting by Andjarsari Paramaditha in Jakarta; Editing by Anupama Dwivedi) ((andjarsari.p@thomsonreuters.com)(+62 21 3199 7170)(Reuters Messaging: andjarsari.p.thomsonreuters.com@thomsonreuters.net))

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12:32 STOCKS NEWS INDONESIA-Express Transindo plans November IPO

PT Express Transindo Utama Tbk, an Indonesian taxicab operator, is looking to sell 49 percent of its enlarged capital through an initial public offering (IPO) in November, the company said in a newspaper announcement on Wednesday.

The company aims to sell 1 billion new shares, but the target price has not been fixed, the statement said.

Express Transindo, part of Indonesian conglomerate Rajawali Group, manages 6,002 regular and 43 premium cabs, which operate in Java and Bali islands.

PT Mandiri Sekuritas is the underwriter for the IPO.

1154 (0454 GMT) (Reporting by Andjarsari Paramaditha in Jakarta; Editing by G. Ram Mohan) ((andjarsari.p@thomsonreuters.com)(+62 21 3199 7170)(Reuters Messaging: andjarsari.p.thomsonreuters.com@thomsonreuters.net))

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11:45 STOCKS NEWS INDONESIA-Trading in Perdana Karya suspended

The Indonesian stock exchange suspended trading in the shares of PT Perdana Karya Perkasa after the stock jumped 141.57 percent between Sept. 10 and Oct. 2.

"The stock exchange needs to suspend trading of Perdana Karya Perkasa shares on Oct. 3 to cool down the price," the exchange said in a statement.

The coal miner is in the process of acquiring a 5,000-hectare mine in East Kalimantan, the company had said in a statement to the stock exchange last month.

Shares of Perdana soared to their highest in nine months on Tuesday to 220 rupiah, from a year-low of 78 rupiah on July 24, and closed the day at 215 rupiah.

The broader Jakarta Composite Index was down 0.04 percent.

1127 (0427 GMT)

(Reporting by Andjarsari Paramaditha; Editing by Jijo Jacob)

((andjarsari.p@thomsonreuters.com)(+62 21 3199 7170)(Reuters Messaging: andjarsari.p.thomsonreuters.com@thomsonreuters.nett))

Keywords: MARKETS INDONESIA STOCKSNEWS/COAL