CIMB Equity Research cut its rating on Indonesia's PT Bank Danamon to 'underperform' from 'buy', saying de-rating catalysts are expected from on-going acquisition uncertainty.
"The press reports that BI (Bank Indonesia) has approved a 40 percent stake purchase of Danamon by DBS, but demands more reciprocity from Singapore's central bank if DBS is to acquire more," CIMB said in a report on Wednesday.
"DBS and Temasek might walk away as a 40 percent stake does not align with their interest to consolidate their Indonesian footprint under one bank."
The research house also cut Danamon's target price to 5,350 rupiah from 6,000 rupiah and advised investors to take profit, as uncertainties could drive Danamon's share price closer to its fundamental value.
Bank Danamon shares slid 2.5 percent to 5,850 rupiah. The broader index was up 0.35 percent.
1450 (0750 GMT)
(Reporting by Andjarsari Paramaditha in Jakarta; Editing by Subhranshu Sahu)
*************************************************************** 13:37 STOCKS NEWS INDONESIA-Citi raises target price on media companies Citi Research has raised the target price on media companies under its coverage due to robust growth in advertising spending and strong momentum ahead of the 2014 presidential election in Indonesia.
Election spending is expected to be in the range of $300 million to $400 million, which would translate to about $210-$280 million additional spending on TV, said Ferry Wong, Citi's Jakarta-based head of research, in a note on Wednesday citing industry sources.
Citi's top picks includes Media Nusantara Citra, MNC Sky Vision and Surya Citra Media. It raised Media Nusantara's target price to 4,400 rupiah per share from 3,400 rupiah, MNC Sky's to 3,200 rupiah from 2,350 rupiah and Surya Citra's to 3,700 rupiah from 3,000 rupiah.
Media Nusantara shares rose 3.68 percent to 3,525 rupiah, while Surya Citra shares were up 3.51 percent at 2,950 rupiah. The broader index was up 0.3 percent.
1333 (0633 GMT)
(Reporting by Andjarsari Paramaditha; Editing by Prateek Chatterjee)
