JSX suspends Erdhika Mulyatama

JSX suspends Erdhika Mulyatama

JAKARTA (JP): The Jakarta Stock Exchange (JSX) yesterday suspended a securities company, PT Erdhika Mulyatama, for thirty trading days for its failure to comply with trading rules.

In addition to the suspension, which began yesterday, JSX also fined Erdhika Rp 2.5 million (US$1,081).

A JSX director, Stanislaus Say, said yesterday that Erdhika had failed to execute a transaction it had made with another brokerage firm, PT GK Goh Ometraco, although it had been warned and fined twice by the exchange.

On Nov. 2, Erdhika ordered 100,000 shares of PT Sucaco Cable at Rp 5,500 per share. The order was responded to by Goh Ometraco, which then offered to sell the 100,000 shares wanted by Erdhika at Rp 5,700 each. Both sides then made a deal at Rp 5,500 per share.

"We hope that Erdhika will execute the transaction soon because our client has also instructed us to sell the stocks at Rp 5,500 each," Goh Ometraco's corporate finance director, Rofinus Pardede, told The Jakarta Post.

Pardede said that Erdhika might not want to execute the order because the price of Sucaco shares has now dropped after Sucaco issued rights shares last November.

"If Erdhika remains disobedient, not executing the transaction within a given period, JSX will revoke its exchange membership," Stanislaus said.

Based on last year's trading activities, the trading value of Erdhika and Ometraco reached 0.20 percent and 1.09 percent respectively of JSX's total trading value. (08)