By Yi Wei Wong

Indonesian conglomerate Astra International's shares gained in early Tuesday trade as investor optimism rises on the reopening of the country's economy in June.

The shares, now trading 7.8% higher at 4,280 Indonesian rupiah (US$0.29), are at a massive discount to its historical averages, Trimegah Securities says. The company's automotive business was badly hit by Covid-19 and investors may be betting on a "V-shaped recovery," although the recovery is unlikely to be straightforward, the brokerage adds.

The sale of the company's 89.12% stake in Bank Permata for $2.3 billion earlier Tuesday could also support its 2020 earnings, the broker says.

Trimegah Securities on May 17 raised the target price of the stock to IDR4,200 from IDR3,800 and upgraded its rating to buy from neutral. 



  Write to Yi Wei Wong at yiwei.wong@wsj.com