JAKARTA. Indonesia Stock Exchange (IDX) lists PT Raharja Energi Cepu TbK (RATU) under stocks with Unusual Market Activity (UMA), due to its abnormal surge in price.

The stock exchange authorities mentioned that the decision is carried out as a means of investor protection. However, the UMA status applied on RATU does not necessarily indicate any violation to the stock exchange regulation.

RATU debuted on the stock exchange last Wednesday (8/1) after collecting IDR 624 billion of fresh funds from initial public offering (IPO). This subsidiary of PT Rukun Raharja Tbk (RAJA) offered the shares for IDR 1,150 each.

As of now, RATU’s price has skyrocketed over 200% to IDR 4,330 per share until today’s (15/1) opening bell. As of now, it has touched upper-auto-reject level for five consecutive days.

“The stock exchange is currently observing the development of this stock transaction pattern,” said Yulianto Aji Sadono, Head of Transaction Supervision Division of IDX, in the official disclosure today (15/1).

According to IDNFinancials data, this price surge brings RATU’s Price to Earning (P/E) Ratio to 34.06. It is much higher compared to the average P/E ratio of companies in the energy sector (10.43) as well as oil and gas industry (9.36).

Stocks with P/E ratio higher than its industry or sector average are sometimes called overvalued stocks; they are more expensive than their actual value. (KR/ZH)