Update COVID-19 in Indonesia: 563,680 confirmed infections, 17,479 deaths (4 December 2020)
4 December 2020 (closed)
USD/IDR (14,182) +5.00 +0.04%
EUR/IDR (17,221) +45.06 +0.26%
Jakarta Composite Index (5,810.48) -12.46 -0.21%
On Thursday's trading day, stocks of Bumi Resources gained 26.39 percent in value after the heads of terms agreement between Bumi Plc and the Bakrie Group was published in worldwide media on Wednesday. This agreement outlines the separation of the Bakrie Group (including Bumi Resources) from London-listed Bumi Plc after the Group had a fall out with Bumi Plc co-founder, Nathaniel Rothschild.
Shares of Bumi Resources rose from IDR 720 to IDR 910 on Thursday, its highest level in seven months as the company has been plagued by problems with shareholders at Bumi Plc in London and a stagnating coal market. Moreover, the Bakrie Group is known as a highly controversial conglomerate.
In particular Indonesian market participants were enthusiastic about the split and bought Bakrie stocks. Other companies that are controlled by the Bakrie Group also benefited from investors' appetite. Bakrieland Development, Bakrie Sumatera Plantations, Bakrie Telecom and Bumi Resources Minerals all showed robust gains on Thursday.