Underwriters to 'cooperate' on share prices<\/p>\n
JAKARTA (JP): The Association of Indonesian Securities
\nUnderwriters agreed yesterday to \"cooperate\" in maintaining stock
\nprices above their Initial Price Offering (IPO) levels.<\/p>\n
\"We are ready to cooperate to keep prices above the levels set
\nduring the primary offering period,\" L.G. Rompas, the chairman of
\nthe association, said following a meeting with the chairman of
\nthe Capital Market Supervisory Agency (Bapepam), Bacelius Ruru.<\/p>\n
Rompas and several other members of the association met Ruru
\nto explain the association's working agenda and the association's
\ncapital market responsibilities.<\/p>\n
The Bapepam chairman sent letters to nine securities companies
\nlast week asking them about their commitment to preventing the
\nprices of the stocks which they manage from falling far below IPO
\nlevels.<\/p>\n
Prices of several stocks underwritten by the nine securities
\ncompanies -- PT Sigma Batara, PT W.I. Carr Indonesia, PT
\nPentasena Arthasentosa, PT Standard Chartered, PT OCBC Sikap
\nSecurities, PT Pregrine Sewu Securities, PT Danareksa Securities,
\nPT Nomura Indonesia and PT Gadjah Tunggal DBS Securities -- have
\ndropped by 25 percent from their IPO price levels.<\/p>\n
Rompas said that the association would appeal to its members
\nto set share prices at realistic levels to prevent them from
\nfalling on the secondary market.<\/p>\n
\"It is the only realistic thing for us to do,\" he said.<\/p>\n
Rompas said that the association would also cooperate by
\nsetting the timing for the floating of stocks on the market with
\na view to avoiding oversupply.<\/p>\n
However, he ruled out any form of direct intervention to
\ncontrol stock prices.<\/p>\n
\"Buying back shares in order to prop up their price is
\nillegal, since it is a form of price manipulation,\" he said,
\nadding that the sluggish condition of stock prices on the local
\nmarket over the past two weeks was not due to poor fundamental
\nfactors of the companies concerned. Rather, he said, the low
\nprices were due to the poor condition of stock trading on the
\nglobal market. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/underwriters-to-cooperate-on-share-prices-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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