Bahana Securities said crude palm oil (CPO) price may recover in the next few weeks as the current downturn is not sustainable, and it expects strong demand from India and China.
"We remain positive on the Indonesian CPO counters as all CPO counters have underperformed the index by 8 percent in the last one month on seasonally low CPO price," Bahana Securities analyst Leonardo Henry Gavaza, wrote in a note on Thursday.
The research house's top picks in the sector are PT Astra Agro Lestari Tbk and PT BW Plantation on positive growth outlook, recommends to buy the stocks.
At 13.35 a.m. (0635 GMT), the Jakarta Agriculture Index
was up 0.26 percent, while the broader Jakarta Composite Index was up 0.38 percent. 1337 (0637 GMT)
(Reporting by Andjarsari Paramaditha in Jakarta; Editing by Anand Basu)
((andjarsari.p@thomsonreuters.com)(+62 21 3199 7170)(Reuters Messaging: andjarsari.p.thomsonreuters.com@thomsonreuters.net))
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13:33 STOCKS NEWS INDONESIA-Erajaya buys stake in mobile content firm
Indonesia's top phone distributor PT Erajaya Swasembada
has bought a 30 percent stake in mobile content provider Inovidea Magna Global from its owner Kingsville Union Ltd as part of its business expansion strategy.
Erajaya bought the stake for 750 million rupiah ($78,200), it said in a statement to the Indonesian stock exchange on Thursday.
Jakarta-based Inovidea develops internet games and mobile applications.
Post the deal, Kingsville will own 69 percent of Inovidea, while the latter's CEO will hold 1 percent.
Shares of the phone retailer were down 2.38 percent at 2,050 rupiah, while the broader index was up 0.29 percent.
1305 (0605 GMT) ($1 = 9,585 rupiah)
(Reporting by Andjarsari Paramaditha, Editing by Prateek Chatterjee)
((andjarsari.p@thomsonreuters.com)(+62 21 3199 7170)(Reuters Messaging: andjarsari.p.thomsonreuters.com@thomsonreuters.nett))
Keywords: MARKETS INDONESIA STOCKSNEWS/PLANTATION