JSX queries price fluctuations

JSX queries price fluctuations

JAKARTA (JP): The management of the Jakarta Stock Exchange
(JSX) has asked PT Elang Realty, PT Bukaka Teknik Utama, PT
Indospring and PT Tempo Scan Pacific to explain the sharp
fluctuation of their share prices in the last few days.

In letters to the four listed companies, the JSX's trading
division said the increase in their share prices in the past few
days had been "very significant".

The property company PT Elang Realty's share price increased
29 percent to Rp 875 Thursday from Rp 675 Wednesday. It declined
to Rp 825 yesterday.

Its price had fluctuated between Rp 675 and Rp 775 in the
previous days.

Securities analysts and brokers said the significant increase
in Elang Realty's share prices were caused by a rumor Johannes
Kotjo, known takeover riders, planned to acquire Bank Perniagaan,
Elang Realty's banking arm.

Capital market investors reacted positively to the planned
entry of Johannes, pushing up Elang Realty's share prices.

Recent reports have said the bank had mounting bad debts, a
problem investors believed Johannes would alleviate. This would
free Elang Realty from Bank Perniagaan's financial problem.

Earlier reports said the central bank, Bank Indonesia, had
asked investors to save the debt-ridden Bank Perniagaan.

Among investors were Johannes and Mohammad (Bob) Hasan. But
the would-be investors did not want to enter directly into Bank
Perniagaan, instead through its holding, PT Elang Realty.

The management of PT Elang Realty were not available for
comment. Company staff contacted by The Jakarta Post declined to
comment, saying management were not available.

The listed property company recorded a total profit of Rp 2.65
billion in 1995 and revenues of around Rp 25.54 billion.

PT BEJ also asked PT Bukaka Teknik Utama and PT Indospring to
explain the reasons behind sharp share price increases in the
past few days.

Bukaka's shares rose 24.59 percent to Rp 1,950 Thursday from
Rp 1,525 the previous day. The company's share fluctuated around
Rp 1,475 and Rp 1,550 in previous days.

The company's investor relations manager, Elaine Eleazar, said
he did not know why the price had risen, but acknowledged the
company planned to have some big projects in the upcoming months.

The company plans to have some big telecommunication projects
starting April this year.

Elaine Eleazar said these projects were on the drawing boards,
but declined to mention the investment.

However, one source said the company would likely win
telecommunication projects to install 150,000 telephone lines in
Jakarta in one year. It would also win a big contract in East
Java in the coming months. One telephone line will cost US$1,000.

The source said there were six investors entitled to run the
telephone line projects.

With that, Bukaka would require no less than US$150 million
investment per year.

"The project would last for five years," he said.

PT Bukaka Teknik Utama would have to find another $750 million
to finance the other telephones lines in the coming years. (09)