Wednesday, February 10, 2010

IDX investigates possible insider trading at Matahari

Kompas.com quoted senior official at Indonesian stock market authority that IDX is investigating insider trading allegation related to acquisition of 90.76% shares in PT Matahari Department Store (LPPF) Tbk by Meadow Asia Co Ltd, a company to be controlled by CVC Capital Partners and Matahari Putra Prima (MPPA).
"We're investigating the trading of LPPF stocks since early this year on the insider trading possibility," Kompas.com quoted the officer this morning. Why? "Because the stock has skyrocketed way before the acquisition announcement in January 25," the officer explained.
FYI, LPPF advanced further by 3.45% this morning to Rp3,000. In November 10, 2009, LPPF was Rp110, but then skyrocketed to Rp1850 in Jan 15, one week before the acquisition announcement. LPPF was Rp1350 when MPPA announced the deal with CVC. Since then the stock has doubled to Rp3000 this morning.
With small money, someone has sent the stock sky high, because the average trading volume in the past three months is only 3,327 shares per day. Unbelievable! Asymmetry of information, right?

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