Skip navigation
Newswire

Indonesia Hot Stock - Astra dives on failed meeting

JAKARTA, Nov 27 (Reuters) - The following Jakarta stock was on the move on Wednesday.

------------------------------------------------

ASTRA DIVES 4.2 PERCENT ON FAILED MEETING

------------------------------------------------

Indonesia's leading automaker PT Astra International dived 100 rupiah in early Wednesday trade to 2,300 rupiah after a key creditors meeting scheduled on Tuesday fell through, creating uncertainty over the company's debt restructuring plan.

"It is losing because of the failed meeting," said a local dealer.

The meeting, aimed at winning lenders' approval of an $820 million debt restructuring proposal, broke up on Tuesday because it lacked of a quorum. The company said it would be adjourned to sometime next month. The postponement was already blamed as the main factor in a 6.8 percent fall for the share on Tuesday.

The Jakarta Stock Exchange said on Tuesday it is investigating recent stock transactions of Astra following sharp price swings.

The tenth largest listed firm on the Jakarta Exchange in terms of market capitalisation, which is 32 percent owned by Singapore's Cycle & Carriage , was the most active blue chip in early Wednesday trade.

Astra has said it has reached agreement with six major creditors, who together hold 30 percent of the firm's outstanding debt, on the restructuring plan. But the plan needs support of other lenders to reach two-thirds of the debt to be restructured before it becomes effective. ($1=8,980 rupiah)