JSX investigating leap in Ades shares
Rendi A. Witular, Jakarta
The Jakarta Stock Exchange (JSX) said on Thursday there were preliminary indications of insider trading behind the recent leap in the share price of beverage company PT Ades Alfindo Putrasetia.
JSX director of trading supervision Sihol Siagian told The Jakarta Post the bourse would investigate the possibility of insider trading.
"There is an early indication of insider trading. There should have been a certain essential fact that triggered investors to buy the shares.
"We are still waiting for the management of Ades to clarify information on any corporate action or performance that was not equally distributed to the public .... We will summon the management once again next week," he said.
According to the JSX, Ades shares have skyrocketed by 66.67 percent, or Rp 1,200, from Rp 1,800 on July 23 to Rp 3,000 on Wednesday.
The JSX suspended trading of Ades shares from July 26 until Aug. 2 after the shares leaped from Rp 1,100 to Rp 1,800 on July 23. The dramatic rise was the result of a report from Ades to the bourse that Swiss-based company Water Partners Bottling SA had bought a 65 percent stake in the beverage firm.
Water Partners is a joint venture company set up late last month by Swiss food company Nestle SA and Refreshment Product Service Inc., a subsidiary of U.S.-based beverage giant Coca-Cola Co. The company was set up to sell bottled water in Indonesia, Southeast Asia's largest economy.
After Ades management clarified the report, the JSX lifted its suspension on Aug. 3. However, the bourse decided to halt trading of the shares again on Thursday following the "uncontrolled" movement of the shares.
"The surge was recorded in just three trading days. This is not normal, there are some facts that are still being hidden by the company," said Sihol, adding that the company's delay in submitting its first semester financial report had further increased suspicion.
The JSX has given public companies until July 30 to submit their unaudited first half financial reports, or until Sept. 30 for audited reports.
In its report to the JSX, Ades said its delay in submitting the financial report was caused by changes in the management's composition.
According to Law No. 8/1995 on capital markets, a person found guilty of insider trading can receive a maximum prison sentence of 10 years and a maximum fine of Rp 15 billion (US$1.64 million).
Based on the law, insider trading refers, in general, to an action by an insider at a public company in possession of inside information to influence a person to buy or sell the company's shares, or to provide inside information to a person he or she has reason to believe may use such information to buy or sell the shares.