Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Indosat Declines Most in Four Months as Rally Seen Excessive

PT Indosat, Indonesia’s second-biggest mobile-phone operator by revenue, fell the most in four months in Jakarta trading after its rally since June triggered a technical indicator to signal the gains were excessive.

Indosat fell as much as 6.6 percent, the steepest intraday drop since May 15, to 5,650 rupiah before trading at 5,700 at the 4 p.m. local-time close. The Jakarta Composite index lost 0.7 percent. Indosat has risen 30 percent in the past three months through yesterday driven by a rally in PT Telekomunikasi Indonesia, the biggest mobile-phone operator, said Ryan Ariadi Suwarno, an analyst at PT Kiwoom Securities Indonesia. While Telekomunikasi’s rally was supported by good earnings, Indosat’s gains were not, he said.

“Indosat looks overbought,” Ariadi said by telephone in Jakarta today. “From a technical point of view there should be a correction.”

Indosat’s 14-day relative-strength index, a moving average based on how rapidly prices have advanced or dropped, rose to 72 yesterday. A reading of 70 or above suggests to some investors the stock is poised to fall. The Jakarta-based company posted a first-half net loss of 131.8 billion rupiah ($13.8 million) compared with a net income of 724.5 billion rupiah a year ago. Indosat’s rally from June pushed it’s valuation to 25.2 times-estimated earnings, more expensive than the 15.4 multiple of shares on the benchmark stock index.

Indosat doesn’t have any information that could explain the drop in its share price today, Adrian Prasanto, a spokesman at the company, said in a mobile-phone text message.

“People are selling Indosat because they think the shares have risen for too long,” Gunawan Sutanto, an analyst at PT Phillip Securities Indonesia, said by telephone in Jakarta. “The stock isn’t in a bearish territory yet but the drop could mark the end of its bullish trend.”

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.