Around Asias Markets: Real estate makes a charge in Indonesia
Indonesian property stocks were the nations worst performers in 2005. This year, theyre leading gains in Southeast Asias fastest-rising market.
The Jakarta Stock Exchange Construction, Property and Real Estate Index has surged 51 percent in 2006, outperforming the 32 percent advance of the benchmark Jakarta Composite Index.
Developers such as Ciputra Surya and Summarecon Agung are rebounding on investor expectation the central bank will keep cutting interest rates following a reduction this week.
Investors are jumping into an industry that is playing catch-up as real estate stocks elsewhere in the region recover from the 1997- 98 Asian financial crisis. Even after this years gains, Indonesian property shares are cheaper than developers in most of Southeast Asia, measured by price-to-book value. They trade at less than a fifth the average of the nations stocks.
More: iht.com
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Asian stock markets were mixed on Tuesday but commodity companies such as global miner BHP Billiton (BHP.AX: Quote, Profile, Research) and energy developer INPEX Holdings (1605.T: Quote, Profile, Research) rose on the back of a surge in metals and oil prices.
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By 0025 GMT, Tokyo stocks < .N225> were flat, up 0.01 percent,
