Indonesia Telkom Rebounds 2.9% After Falling On SEC News
Thursday June 12, 10:48 pm ET
JAKARTA -(Dow Jones)- Shares of PT Telekomunikasi Indonesia, or Telkom, rebounded 2.9% to 4,475 rupiah ($1=IDR8,240) Friday after falling 7% Thursday on news the U.S. Securities and Exchange Commission (News - Websites) may delist the telecom company due to problems with its 2002 financial accounts.
News the SEC had rejected the accounts on concerns over the status of the auditor also sent the company's American Depository Receipts down 5.7% to $10.65 overnight on the New York Stock Exchange (News - Websites).
But the local stock rebounded Friday at the open in Jakarta. Traders noted Telkom has said it would hire a new auditor and reassured the market the problems were mainly procedural and would not lead to a revision of its 2002 accounts
Telkom made a 2002 net profit of IDR3.345 trillion, almost double the previous year, due to revenues from its cellular company, PT Telekomunikasi Selular Indonesia, or Telkomsel. Telkom has a 65% stake in the company, with Singapore Telecommunications Ltd. holding the remainder.
Still, investors are concerned Telkom's problems with its audit shows Indonesian standards of financial disclosure are still far behind those in the U.S.
-By Tom Wright, Dow Jones Newswires; 6221 3983 1277; tom.wright@dowjones.com
-Edited by Karen K. Lane |
