Prabowo related stocks' decline following Indonesia poll

WATARU SUZUKI, Nikkei staff writer

JAKARTA -- Several stocks regarded as related to Indonesian presidential candidate Prabowo Subianto were hit by steep declines on Thursday morning after surveys suggested that his opponent Joko Widodo was leading in the tightly contested election yesterday.

     The benchmark Jakarta Composite Index touched a one-year high of 5,165.42 in early trading, rising more than 2% from the previous trading day. Samples of votes cast during the election known as "quick counts" taken from several independent survey companies, showed Widodo, widely known as Jokowi, leading Subianto by around five percentage points. Widodo's clean and down-to-earth image has been favored among investors.

     On the other hand, shares of many companies that have ties to Subianto have tumbled. Investment vehicle Saratoga Investama Sedaya, whose founder Sandiaga Uno acts as the spokesman for Subianto and his running mate Hatta Rajasa, fell 15% to 4,510 rupiah (43 cents) during trading time.

     Bumi Resources, a major coal producer owned by Indonesian conglomerate Bakrie Group, also touched a two-week low of 152 rupiah. Bakrie Group owner Aburizal Bakrie is also the chairman of the Golkar Party, which backs Subianto.

     Shares of media groups that have been highly influential in Subianto's election campaign also tumbled. Viva Media Asia, which is also controlled by the Bakries, and Media Nusantara Citra, owned by media mogul Hary Tanoesoedibjo, both declined by more than 5% during trading time.

     "Stocks that were expected to benefit from a Prabowo victory are obviously hit by market sentiment anticipating a Jokowi win," said Maynard Arif, head of research at DBS Vickers Securities in Jakarta.

     But he added that the sell-off may not last long as official results have yet to be announced. Subianto also claimed victory based on several surveys and told his supporters to wait for the official numbers by the election committee later this month.