PT Bank Danamon Indonesia rose the most in 20 months in Jakarta trading amid speculation DBS Group Holdings will buy a stake in the Indonesian lender, according to Teguh Hartanto, an analyst at PT Bahana Securities.

Danamon, owned by Singapore’s Temasek Holdings and Deutsche Bank AG, surged 11% to 5,950 rupiah at the 4 p.m. Jakarta time close, the steepest increase since May 19, 2009. The Jakarta Composite index gained 0.4%.

 

“Talks about an investor looking to buy a company prompt the market to assume that the company must be doing well,” Andrew Siahaan, an analyst at PT Reliance Securities in Jakarta, said. Furthermore “a new investor may provide Danamon with fresh funds that it could use to expand lending.”

 

So far there’s no plan for a change in the bank’s ownership, Vera Eve Lim, finance director at Jakarta-based Danamon, said in a mobile-phone text message. Temasek said in a statement it declined to comment.