JSX investigating leap in Ades shares
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.
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.