JSX investigating leap in Ades shares<\/p>\n
Rendi A. Witular, Jakarta<\/p>\n
The Jakarta Stock Exchange (JSX) said on Thursday there were
\npreliminary indications of insider trading behind the recent leap
\nin the share price of beverage company PT Ades Alfindo
\nPutrasetia.<\/p>\n
JSX director of trading supervision Sihol Siagian told The
\nJakarta Post the bourse would investigate the possibility of
\ninsider trading.<\/p>\n
\"There is an early indication of insider trading. There should
\nhave been a certain essential fact that triggered investors to
\nbuy the shares.<\/p>\n
\"We are still waiting for the management of Ades to clarify
\ninformation on any corporate action or performance that was not
\nequally distributed to the public .... We will summon the
\nmanagement once again next week,\" he said.<\/p>\n
According to the JSX, Ades shares have skyrocketed by 66.67
\npercent, or Rp 1,200, from Rp 1,800 on July 23 to Rp 3,000 on
\nWednesday.<\/p>\n
The JSX suspended trading of Ades shares from July 26 until
\nAug. 2 after the shares leaped from Rp 1,100 to Rp 1,800 on July
\n23. The dramatic rise was the result of a report from Ades to the
\nbourse that Swiss-based company Water Partners Bottling SA had
\nbought a 65 percent stake in the beverage firm.<\/p>\n
Water Partners is a joint venture company set up late last
\nmonth by Swiss food company Nestle SA and Refreshment Product
\nService Inc., a subsidiary of U.S.-based beverage giant Coca-Cola
\nCo. The company was set up to sell bottled water in Indonesia,
\nSoutheast Asia's largest economy.<\/p>\n
After Ades management clarified the report, the JSX lifted its
\nsuspension on Aug. 3. However, the bourse decided to halt trading
\nof the shares again on Thursday following the \"uncontrolled\"
\nmovement of the shares.<\/p>\n
\"The surge was recorded in just three trading days. This is
\nnot normal, there are some facts that are still being hidden by
\nthe company,\" said Sihol, adding that the company's delay in
\nsubmitting its first semester financial report had further
\nincreased suspicion.<\/p>\n
The JSX has given public companies until July 30 to submit
\ntheir unaudited first half financial reports, or until Sept. 30
\nfor audited reports.<\/p>\n
In its report to the JSX, Ades said its delay in submitting
\nthe financial report was caused by changes in the management's
\ncomposition.<\/p>\n
According to Law No. 8\/1995 on capital markets, a person found
\nguilty of insider trading can receive a maximum prison sentence
\nof 10 years and a maximum fine of Rp 15 billion (US$1.64
\nmillion).<\/p>\n
Based on the law, insider trading refers, in general, to an
\naction by an insider at a public company in possession of inside
\ninformation to influence a person to buy or sell the company's
\nshares, or to provide inside information to a person he or she
\nhas reason to believe may use such information to buy or sell the
\nshares.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-investigating-leap-in-ades-shares-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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