Sinarmas shares plummet after recent surge

Singapore

AFTER hitting a 52-week high of 84.5 Singapore cents on March 11 amid talk that Sinarmas Land had revived plans to list a unit, the company's stock plunged 7.8 per cent to 70.5 cents on Monday. The retreat came as a report on Monday said that the listing of the company's Indonesian industrial property unit, PT Puradelta Lestari, on the Indonesia Stock Exchange would take place mid-year.

The Reuters report quoted an Indonesian stock exchange official as saying that a 10-20 per cent stake in Puradelta would be sold in an initial public offering in June. When contacted by BT, a company source at Sinarmas Land said that this was only a preliminary discussion and nothing was firmed up. "We are always exploring but I cannot say if we are doing it this year or next year. We have not done any filing of documents with the Exchange or OJK (Otoritas Jasa Keuangan)," said the source. OJK is the Financial Services Authority of Indonesia. SGX on Monday queried Sinarmas on the recent unusual price movements. Sinarmas said it was not aware of any reason for the movements.