Jardine Cycle & Carriage Ltd., an automotive distributor that gets about 93 percent of its revenue from Indonesia, tumbled after early results showed the opposition party favored by investors in the southeast Asian nation failed to win enough support to rule on its own.
Jardine Cycle dropped as much as 9.2 percent, its biggest intraday decline since October 2011, and traded 6.7 percent lower at S$44.97 as of 10:45 a.m. Shares in the company had surged 45 percent from Feb. 5 through April 8. Parent Jardine Matheson Holdings Ltd. slid 4.2 percent today to $59.90. Jardine Strategic Holdings Ltd. fell 3.7 percent to $34.20. The Jardine companies were the biggest drag on the Straits Times Index, which fell 0.6 percent to 3,189.37.
“Jardine Cycle has had a fantastic move,” Alan Richardson, whose Samsung Asean Equity Fund outperformed 96 percent of peers tracked by Bloomberg during the past 12 months, said from Hong Kong. “It’s inevitable that there would be profit-taking given the setback in the Indonesian elections.”
Presidential frontrunner Joko Widodo may need to form a coalition to win the office as unofficial estimates show his party, Indonesia’s main opposition, holding an unexpectedly slim lead in parliament.
Under Indonesian election laws, the 52-year-old Jakarta governor may need an alliance to stand in July’s presidential election. That would limit his ability to carry out policy changes in Southeast Asia’s largest economy, after expectations for such moves helped boost the Jakarta stock market 17 percent in the past three months, the world’s biggest rise in the period.
The Jakarta Composite Index dropped 2.7 percent, heading for its second day of decline, after Widodo’s Indonesian Democratic Party of Struggle, or PDI-P, took 19.6 percent of the votes in elections yesterday, based on a tally by Lingkaran Survei Indonesia. That is about half the level projected in a March poll. Formal results won’t be declared until May 9.
PT Astra International, majority owned by Jardine Cycle and Indonesia’s biggest auto retailer, sank 6.5 percent to 7,525 rupiah, heading for its steepest decline since Sept. 24.