Tile Maker Arwana Citramulia Announces Stock Buyback
Jakarta. Ceramic tile maker Arwana Citramulia has been buying back shares in an attempt to shore up its stock price in the face of a bearish trend in the local stock market.
The company is planning to buy up to Rp 18 billion ($1.3 million) worth of stocks from Tuesday to Nov. 25, the company said in a statement to the Indonesia Stock Exchange (IDX) late on Wednesday.
“A stable share price would boost confidence of the shareholders and the stakeholders, including consumers, creditors and suppliers toward the company,” Arwana said in the statement.
The company's shares have lost 53 percent of their value so far this year. They closed at Rp 463 a piece on Wednesday, falling by 1.7 percent from a day earlier, against a 0.2 percent gain of the benchmark index.
Indonesian stocks have fallen more than 19 percent this year as fear of a Chinese slowdown has prompted foreign investors to sell stocks held in emerging markets.
Listed state-owned enterprises are also moving to buy back their shares after getting the green light from the government, in a move to shore up the stock market.
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