JSX probes unusual share trade in Plaza Indonesia
JSX probes unusual share trade in Plaza Indonesia
JAKARTA (JP): The Jakarta Stock Exchange (JSX) is investigating the unusual price fluctuations in Plaza Indonesia (hotel and property) stocks early this year.
A director of the bourse, Mas Achmad Daniri, told The Jakarta Post yesterday he has instructed his staff to check into whether unfair practices had taken place in the stock transactions.
Plaza Indonesia was an inactive stock with a price of Rp 2,100 on Dec.26 and Dec. 27 last year. On the last trading day, Dec.28 the price dropped sharply to Rp 1,000.
But on Jan. 2, the first day of trading this year, the stock closed Rp 750 higher at Rp 1,750. The next day the price rose to Rp 2,075 and surged again to Rp 2,100 on Thursday. Yesterday the price stayed at the same level.
Director of Sigma Research Institute Jasso Winarto told the Post that it is not unusual for an inactive stock to fluctuate sharply.
Jasso said the case might be different if this happened with a blue chip stock or an actively-traded stock like Telkom or Gudang Garam.
But to be sure all was on the up and up, he suggested that "JSX, as the market authority, should conduct an investigation for the sake of market integrity."
A dealer from a local brokerage, who asked not to be named, told the Post that the way the price rose was strange.
"It might have closed at that level (Rp 1,750 on Jan.2) if the bid and offer of the transaction had been done gradually from a lower level," he said.
On Nov. 7 last year, JSX suspended a newly-listed stock, PT Bhuwanatala Indah Permai (BIP), because of a sharp price rise from Rp 1,350 to Rp 2,025 following rumors of a takeover.
The rumors turned out to be true. On the next day, BPI announced that a company controlled by Bambang Trihatmodjo and Johanes Kotjo had disclosed their intention to take over BPI through a tender offer.
On Nov.9, the suspension was revoked, but market players were waiting for JSX's report on its investigation into the transaction.
A few days later JSX said that the investigation had been handed over to the Capital Market Supervisory Agency, Bapepam.
Bapepam has yet to announce its findings. (08)