Listed companies are preparing to purchase their own shares on the Indonesia Stock Exchange amid a bearish market, which analysts see as a potential catalyst to ease pressure on Indonesian equities.
Market meltdown: A visitor takes photos of a screen showing Indonesian share price movements on Feb. 2 at the Indonesia Stock Exchange (IDX) in Central Jakarta. (Antara/Sulthony Hasanuddin)
Listed companies are preparing to purchase their own shares on the Indonesia Stock Exchange (IDX) amid a bearish market, which analysts see as a potential catalyst to ease pressure on Indonesian equities.Those that have requested stock buybacks include tech firm PT GoTo Gojek Tokopedia as well as mining giants PT Trimegah Bangun Persada, better known as Harita Nickel, and PT Adaro Andalan Indonesia.
Trimegah Bangun Persada, which trades under the ticker code NCKL, stated in a public disclosure on Friday that it was set to conduct a share buyback of up to Rp 1 trillion (US$56 million) within 12 months, starting after gaining approval at its annual general meeting of shareholders on June 30.
“The company is conducting a share buyback with consideration that the current share price does not reflect the actual value of the company, even though the company has shown a fairly good performance,” reads the public disclosure.
