Have you ever heard the issuer's news which sounds something like this:
"AHAA shares have been suspended because the stock price has moved beyond reasonable limits. Currently AHAA shares cannot be traded on the Exchange. The company will provide information disclosure as a follow-up to the suspension case"
What does the information above mean? First you have to understand the keywords. The keywords of the information are: SUSPENSION. Suspension means the temporary suspension of stock trading activities from the Indonesia Stock Exchange. So, if you can buy AHAA shares in the stock market, when AHAA shares are suspended, you cannot trade AHAA shares until the AHAA company's suspension status is "revoked" by the Indonesia Stock Exchange (IDX). If the shares of an issuer with suspended status have been "revoked" (unsuspended), then you can trade the company's shares on the Stock Exchange.
What are the things that cause the company's stock to be suspended? There are many factors that the shares of a Tbk company could be subject to suspension.
First. The company's stock price is engaged in unusual activities or Unusual Market Activity (UMA). You need to know, before a company is suspended, the IDX usually determines the UMA status first to the issuer concerned. When the stock price continues to move unnaturally, it is likely that the IDX will suspend the company, so automatically the shares cannot be traded on the stock market. But you need to know, not always companies that are subject to UMA, must be suspended. It could be that the UMA status is no longer attached to the company, if in the next stock trading, the stock price moves normally again.
Second. Fried Stock. Stocks that are being fried by the dealer, so that the movement becomes unnatural, can become shares with the UMA category. Finally, these shares could potentially be subject to suspension from the Stock Exchange.
Third. Company shares are often subject to auto rejects. Companies that are constantly subject to author rejection, indicate that there is something unusual in their stock trading activities (UMA). If you don't understand auto reject, please read the post: Meaning and Terms of Auto Reject Stock.
Fourth. The company in question was hit by a prolonged problem. For example: the company is entangled in a prolonged debt case, or there is embezzlement of funds from the company so that the company's operational activities do not run properly.
Fifth. There are company policies that are not disclosed to the public. For example: policies on mergers, acquisitions and others, or even company policies that become rumors that make stock price movements unnatural. Company policies with unclear objectives can be the cause of the company's shares being suspended.
Sixth. The company's delay in submitting its obligations to the Indonesia Stock Exchange. For example: the company's delay in submitting the financial statement deadline, the company has not paid the late fee, has not paid the annual listing fee, and others. So, companies that are subject to suspension are not always related to an unreasonable increase/decrease in the company's stock price. Indeed, issuers who often have problems because of their delays, usually their stock prices are not liquid and fall, or even do not move. So, if you are trading, avoid buying companies that often have problems. Several issuers have been suspended because of their delay in submitting their obligations to the IDX.
Some of these points you must understand, and you must be observant to digest the news in the capital market, so that your shares are not 'stuck' in stocks that are subject to suspension.
When suspended, the company will clarify the problems faced, disclose information disclosure, including problem solving policies to the Indonesia Stock Exchange. If the company's problems can immediately find a bright spot that causes the stock price to move unnaturally, then the Stock Exchange will reopen the company's stock trading. The term: unsuspension.
Bung Heze, how long is the company's suspension period?
There is no definite timeframe. What is clear is that the suspension period of a company will end sooner if the company can disclose information disclosure as soon as possible. The suspension could last for a few days, or even the company's stock could be suspended for up to a year! Of course, if you want to know why the IDX has implemented a suspension, so that stock trading on the Stock Exchange can run properly and regularly.
Then, how do you know which stocks are subject to UMA or suspension?
Easy. You can monitor it through the website www.idx.co.id. The steps are as follows.
First. Go to the site www.idx.co.id
Second. On the left, IDX home menu click News & Announcements. After that, you will find the words Unusual Market Activity (UMA) and Suspension (note the red circle in the image below).
Third. Click the Unusual Market Activity (UMA) and Suspension menus, depending on which one you want to see.
The official IDX website will display official letters regarding the shares of companies affected by suspension, unsuspension and companies affected by UMA. Thus, it is very possible for you to read all disclosures of information about UMA and suspension. The following is an example of a letter from the IDX to a BAEK issuer regarding the reopening of the suspension (unsuspension).
If you want to see companies that have been suspended or UMA, you can also look through the IDX website, at the bottom of the IDX website, you can also see information on UMA and suspension (see the red circle in the image below).
By knowing the information on the shares of issuers affected by the UMA and suspension, at least you can secure your capital so you don't trade in these stocks.
