TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Garuda nosedives on return to IDX
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
A Garuda Indonesia airplane is parked at Soekarno-Hatta International Airport in Tangerang, Banten, on May 14, 2022. (AFP/Chaideer Mahyuddin)
S
hares of national flag carrier Garuda Indonesia have suffered a precipitous drop in the company’s first days back on the stock market, as it struggles to regain the trust of investors after a solvency crisis last year.
On Tuesday, the Indonesia Stock Exchange (IDX) lifted a trading suspension on Garuda’s shares that had been in place for one and a half years following the airline’s default on US$500 million worth of sukuk (sharia-compliant bonds) in 2021.
Garuda shares plummeted to Rp 175 (1.18 US cents) apiece on Thursday after suffering an almost 7 percent drop for two consecutive days, the steepest one-day drop allowed before the bourse freezes trading of a company for the day.
Analysts said the decline could linger for some time, as investors were expected to continue dumping shares of the airline.
“Many investors [feel] Garuda’s performance has yet to reach a positive zone,” said Nafan Aji Gusta of Mirae Asset Securities on Thursday.
Read also: Bumpy takeoff for aviation, tourism sectors this year
Nafan added that Garuda’s stock price was in a “markdown phase”, a sustained downward trend, and said it remained unclear when the phase would end.
