29/09/2011 (Jakarta Globe) - Stocks rebounded from a 12-month low on Tuesday after the central bank reportedly continued its intervention in the foreign exchange and bond markets to stop the value of Indonesian assets from declining further.

The Jakarta Composite Index advanced 157.80 points, or 4.8 percent, to close at 3,473.94, clawing back the previous day’s 3.2 percent decline. The benchmark ended Monday at its lowest since Sept. 7 last year.

More than 5.25 billion shares worth Rp 5.79 trillion ($648 million) were traded on the Indonesia Stock Exchange. Gainers outnumbered decliners, 247 to 23. Foreign investors returned to the market on Tuesday, with net buying of Rp 42 billion.

The rupiah and bonds rose after the government intervened. The rupiah edged up 0.7 percent to trade at 8,915 against the dollar. Indonesia’s 10-year bond yield fell to 7.20 percent on Tuesday from 7.25 percent on Monday in a sign of easing investor fears.

“This is purely a technical rebound because the market was oversold,” said Janson Nasrial, an analyst with AmCapital. “Government bond yields fell and the rupiah strengthened, all because of the central bank’s intervention.”

Bank Indonesia officials were unavailable to comment.

The International Monetary Fund, which provided more than $20 billion to Indonesia during the 1997-98 Asian financial crisis, backed the government’s intervention in the currency but advised it also to take action in the secondary bond market.

Discussing Indonesia at a briefing in Washington on Saturday, senior IMF adviser Mahmood Pradhan said that yields should be allowed to rise in the local bond market. “That is the volatility that foreign investors should be getting accustomed to,’’ he said.

On the Jakarta boards on Tuesday, Charoen Pokphand, the nation’s largest listed poultry company, surged 20 percent to Rp 2,425.

Kim Eng Securities on Tuesday issued a “buy” recommendation on the stock, with a target price of Rp 3,500. On Monday, Charoen secured $250 million in loans to fund its expansion.

Bank Mandiri and Bank Central Asia were among the mandated lead arrangers for Charoen’s loan facility, with each bank contributing $31 million to the loan. Bank Mandiri’s shares rose 8.2 percent to Rp 5,950, while Bank Central gained 2 percent to Rp 7,500.

Commodity-related shares were higher following a rebound in prices. Crude palm oil futures on the Malaysian exchange rose 1.2 percent on Tuesday to 2,947 ringgit ($936).

The agribusiness sector, which tumbled 6.5 percent on Monday, gained most of that back on Tuesday, rising 5.8 percent.

Astra Agro Lestari, the largest listed crude palm oil company, gained 3.2 percent to Rp 19,400, after falling 9.4 percent on Monday. Fellow producer London Sumatra Plantation jumped 8.5 percent to Rp 1,910.

Astra International, the nation’s largest auto distributor, rebounded 6.2 percent to Rp 60,550 after slipping to its lowest close in four months on Monday.