Semen Gresik shares 'like cat in a sack'<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Shares of state-controlled PT Semen Gresik (SG), the country's
\nlargest integrated cement maker, will continue to be viewed as
\noverly speculative by investors because there is not sufficient
\ninformation to assess the value of Gresik's shares.<\/p>\n
Stock analyst Hendra Bujang of Mega Access Capital Securities
\nsaid on Tuesday that buying SG shares was like \"buying a cat in a
\nsack\" as investors could not fully appraise the shares following
\nan audit problem at the company's rebellious subsidiary PT Semen
\nPadang.<\/p>\n
\"Investors are unable to asses SG's shares because Semen
\nPadang has not yet finished its audit. The shares will always
\nremain a subject of speculation ... For conservative investors SG
\nshares are worth being avoided,\" said Hendra.<\/p>\n
Hendra explained that the shares had often increased when bad
\nnews was reported as speculators would try to lift the share
\nprice to lure other investors to buy the stocks before they
\nthemselves pull out.<\/p>\n
The ensuing fire sale by the speculators will cause heavy
\nlosses to inexperienced small investors or newcomers.<\/p>\n
The Jakarta Stock Exchange (JSX) suspended trading in shares
\nof SG on Monday after the firm's auditor issued disclaimers for
\nits 2002 and 2003 financial accounts.<\/p>\n
SG auditor PricewaterhouseCoopers (PwC) refused to give an
\nopinion on the firm's financial accounts due to unaudited
\nfinancial figures from the company's subsidiary, PT Semen Padang.<\/p>\n
Gresik's shares were last traded at Rp 8,000 before the JSX
\nhalted trading during the morning session.<\/p>\n
The JSX said the shares would be suspended until SG's annual
\nshareholders meeting on June 30 or until SG received a
\nsatisfactory opinion from PwC after completing the audit of Semen
\nPadang.<\/p>\n
SG has been facing difficulties in finalizing its 2002
\nfinancial report, which in turn affected the completion of its
\n2003 report, due to problems with the rebellious West Sumatra-
\nbased Semen Padang, which has demanded that it be separated from
\nthe parent company.<\/p>\n
The government controls 51 percent of SG shares, 25.5 percent
\nis owned by Mexico cement giant Cemex SA and 23.5 percent by the
\npublic.<\/p>\n
Due to the delay, the government is currently planning to
\nchange the composition of the company's current management, which
\nwill be discussed during the company's shareholder meeting.<\/p>\n
A source at the Office of State Ministry of State Enterprises
\nsaid that the government was likely to maintain SG's current
\npresident director Satriyo, and would probably dismiss other
\ndirectors following the audit problem.<\/p>",
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"sponsor": "Okusi Associates",
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