JAKARTA (Yosefardi) – Investors continued selling cement shares this morning on concern over the price cut.
At 9.27 am Jakarta time, state cement maker Semen Indonesia (SMGR) lost 4%, Indocement (INTP) fell 1.35%, Holcim (SCMB) declined 0.98%, and Semen Baturaja (SMBR) down 0.54%.
On Friday last week SMGR fell 7.4%, INTP collapsed 10.3%, probably the biggest daily correction of cement shares. SMBR fell 4.4%.
Investors responded negatively the government’s decision to cut cement price by Rp3000/bag produced by Semen Indonesia.
Some investors read this as a sign that the government might return price administration of cement like during Soeharto years, when we had the so-called Harga Patokan Semen (HPS) or Cement Reference Price.