JSX queries price fluctuations<\/p>\n
JAKARTA (JP): The management of the Jakarta Stock Exchange
\n(JSX) has asked PT Elang Realty, PT Bukaka Teknik Utama, PT
\nIndospring and PT Tempo Scan Pacific to explain the sharp
\nfluctuation of their share prices in the last few days.<\/p>\n
In letters to the four listed companies, the JSX's trading
\ndivision said the increase in their share prices in the past few
\ndays had been "very significant".<\/p>\n
The property company PT Elang Realty's share price increased
\n29 percent to Rp 875 Thursday from Rp 675 Wednesday. It declined
\nto Rp 825 yesterday.<\/p>\n
Its price had fluctuated between Rp 675 and Rp 775 in the
\nprevious days.<\/p>\n
Securities analysts and brokers said the significant increase
\nin Elang Realty's share prices were caused by a rumor Johannes
\nKotjo, known takeover riders, planned to acquire Bank Perniagaan,
\nElang Realty's banking arm.<\/p>\n
Capital market investors reacted positively to the planned
\nentry of Johannes, pushing up Elang Realty's share prices.<\/p>\n
Recent reports have said the bank had mounting bad debts, a
\nproblem investors believed Johannes would alleviate. This would
\nfree Elang Realty from Bank Perniagaan's financial problem.<\/p>\n
Earlier reports said the central bank, Bank Indonesia, had
\nasked investors to save the debt-ridden Bank Perniagaan.<\/p>\n
Among investors were Johannes and Mohammad (Bob) Hasan. But
\nthe would-be investors did not want to enter directly into Bank
\nPerniagaan, instead through its holding, PT Elang Realty.<\/p>\n
The management of PT Elang Realty were not available for
\ncomment. Company staff contacted by The Jakarta Post declined to
\ncomment, saying management were not available.<\/p>\n
The listed property company recorded a total profit of Rp 2.65
\nbillion in 1995 and revenues of around Rp 25.54 billion.<\/p>\n
PT BEJ also asked PT Bukaka Teknik Utama and PT Indospring to
\nexplain the reasons behind sharp share price increases in the
\npast few days.<\/p>\n
Bukaka's shares rose 24.59 percent to Rp 1,950 Thursday from
\nRp 1,525 the previous day. The company's share fluctuated around
\nRp 1,475 and Rp 1,550 in previous days.<\/p>\n
The company's investor relations manager, Elaine Eleazar, said
\nhe did not know why the price had risen, but acknowledged the
\ncompany planned to have some big projects in the upcoming months.<\/p>\n
The company plans to have some big telecommunication projects
\nstarting April this year.<\/p>\n
Elaine Eleazar said these projects were on the drawing boards,
\nbut declined to mention the investment.<\/p>\n
However, one source said the company would likely win
\ntelecommunication projects to install 150,000 telephone lines in
\nJakarta in one year. It would also win a big contract in East
\nJava in the coming months. One telephone line will cost US$1,000.<\/p>\n
The source said there were six investors entitled to run the
\ntelephone line projects.<\/p>\n
With that, Bukaka would require no less than US$150 million
\ninvestment per year.<\/p>\n
"The project would last for five years," he said.<\/p>\n
PT Bukaka Teknik Utama would have to find another $750 million
\nto finance the other telephones lines in the coming years. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-queries-price-fluctuations-1447893297",
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"sponsor": "Okusi Associates",
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