Matahari’s 160% Surge Drives Indonesia Rally After Share SaleHarry Suhartono
PT Matahari Department Store’s shares surged by 160 percent in Jakarta after investors sold stock of Indonesia’s largest retailer by market capitalization at more than double the market price.
Matahari closed at 10,900 rupiah today, as it resumed trading for the first time since March 8, when it settled at 4,200 rupiah. The closing price was the highest based on data compiled by Bloomberg going back to August 1991. The shares accounted for 51 percent of the Jakarta Composite Index’s 1.4 percent advance today, according to data compiled by Bloomberg.
Asia Color Co. and PT Multipolar sold a total of 129.03 million shares at 10,850 rupiah to 200 institutional investors, Multipolar said in a statement to Indonesia’s stock exchange yesterday. CVC Capital and Lippo Group sold 1.167 billion shares at that price, three people with knowledge of the matter said last week.
Purchasers of the shares “have a very long-term view on Indonesia,” Laurentia Amica Darmawan, who helps manage about $510 million at PT First State Investment Indonesia, said by phone today. “That is why they can justify that kind of valuation.”