JSX called on to withdraw new delisting policy<\/p>\n
JAKARTA (JP): A securities investor association has urged the
\nJakarta Stock Exchange (JSX) to withdraw a new delisting
\nregulation, saying that the policy could inspire listed firms to
\nmanipulate their share prices to avoid being delisted.<\/p>\n
Chairman of the Indonesian Securities Investor Society (MISSI)
\nHND Murdani said on Monday that the JSX should have abolished the
\npolicy altogether instead of just postponing it.<\/p>\n
\"To prevent a policy becoming a trap for investors, it's
\nbetter not to have the policy at all,\" Murdani told reporters at
\nhis office.<\/p>\n
Last week JSX announced it postponed several delisting rulings
\nthat had been issued in June last year. The exchange cited the
\ncountry's still unfavorable economic conditions as its reason
\nbehind the delay.<\/p>\n
One ruling said that if a company's shares was traded at below
\nRp 50 (about 0.52 US cents) a share for three consecutive months,
\nthat company would face delisting.<\/p>\n
Murdani argued that the ruling could invite companies to
\ndeliberately mark down their share prices so that it could buy
\nthem out from the public.<\/p>\n
\"If the company's share prices remain below Rp 50 for almost
\nthree months, investors would panic as they fear the company
\nmight be delisted. They would dump their shares at any price,\" he
\nexplained.<\/p>\n
The company, he said, would then buy its own shares to control
\nthem.<\/p>\n
In the following days, the company could spread good news
\nabout its operation to prop up its share prices to enable it to
\nbook significant gains from its buy-out move, Murdani said.<\/p>\n
\"At worst the company might even cooperate with the JSX to
\nhave its share value lifted,\" he added.<\/p>\n
He said many investors had dumped their shares of Bank
\nInternasional Indonesia (BII), whose shares are now trading at Rp
\n25, when it became apparent last week that the bank faced
\ndelisting under the ruling.<\/p>\n
Aside from BII, PT Bakrie Finance was equally threatened by
\nthe delisting ruling last week.<\/p>\n
MISSI's general secretary Tunggul M. Butar Butar also
\nquestioned why the minimum price level was Rp 50, while many
\ncompanies have a nominal value of below Rp 50 for their shares.<\/p>\n
He said that for shares with a nominal value of less than Rp
\n50, setting the minimum price of Rp 50 was not relevant.<\/p>\n
\"The Rp 50 is irrelevant to a company's performance; one must
\nlook at the nominal price of its shares,\" he said.<\/p>\n
Tunggul was in particular referring to several banks that
\nfloated their shares at nominal prices of below Rp 50.<\/p>\n
As of Monday, shares of six companies were traded at below Rp
\n50. These included BII, Bank Universal, Bank Unibank, Bakrie
\nFinance, PT Kasogi International, and PT Mas Murni Indonesia.<\/p>\n
Other banks with equally low share prices were Bank Niaga,
\nBank Lippo, Bank Bali and Bank Danamon, all of whose shares
\nhovered at between Rp 50 to Rp 60.<\/p>\n
The JSX, Tunggul said, should have standardized the nominal
\nprices for companies, or pegged the minimum share price at a
\nnominal price of a company.<\/p>\n
Falling under the delisting criteria are companies whose
\nvolume of transactions in the market is less than 10,000 shares
\nper month; those whose shares are not traded for nine consecutive
\nmonths; or those which have been suspended from trading for 12
\nmonths. (bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-called-on-to-withdraw-new-delisting-policy-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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