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Bloomberg
PT Matahari Department Store was downgraded by at least four analysts and led declines among Lippo Group stocks after a slump in the retailer’s net income prompted a cut in its dividend payout.
Matahari plunged as much as 22 percent in Jakarta trading, the most since December 2011, while PT Lippo Cikarang, PT Lippo Karawaci and PT Siloam International fell between 6 percent to 14 percent. The benchmark Jakarta Composite Index retreated 1.1 percent by midday trading break. Matahari slashed its dividend
to 50 percent of net income
in 2018 from 70 percent after profit slid 42 percent, according to an exchange filing.
Investors dumped share and bonds of Lippo Group companies last year as well after Indonesian investigators named group executives in a bribery case related to a property developed by Lippo Karawaci near Jakarta.