Investors demand Inco to split stocks by five times
Monday, May 31 2004 - 02:52 AM WIB
The investing public has asked nickel mining company PT International Nickel Indonesia Tbk (Inco) to split its stocks by five times instead of by four times as planned by the company, Bisnis Indonesia reported on Monday.
Satino, the association of the Indonesian pension funds, said that if Inco splits its shares by five times it would help small investors, especially those who only own 100 stocks or less.
“If the stock is split only four times, many small investors are still unable to trade their shares,” he said. Under the new trading ruling, investors are allowed only to carry out transaction at the Jakarta Stock Exchange (JSX) only of those who have shares of at least one lot that comprises of 500 shares.
According to Satino, when Inco listed the shares on the JSX, each lot comprised only 0f 100 shares. “I means that investors who have only 100 shares are still unable to carry out transaction even if the stock is split by four times as proposed by Inco,” he said.
Inco planned to split its stocks by four times in a bid to increase the liquidity of the company’s stock trading on the JSX. According to the management, the liquidity of Inco stock trading is low because the price of the shares has been too high (*)