Jardine Matheson Holdings Limited saw its shares rise 1.1% to $76.54 during afternoon trading in Singapore on Monday, rebounding from a previous close of $75.71. The stock traded between $76.01 and $77.49 during the session and has gained approximately 95% over the past year.
Martabe Mine Negotiations in Focus
The share movement follows renewed discussions between Indonesian authorities and Agincourt Resources, the operator of the Martabe gold mine. Indonesia's investment ministry confirmed that officials are reviewing legal and environmental concerns after Jakarta revoked the mine's operating permits. The revocation was part of a broader action affecting 28 companies following deadly floods in Sumatra that resulted in at least 1,200 fatalities.
Agincourt Resources is controlled by Astra International, in which Jardine holds a significant stake through its subsidiary Jardine Cycle & Carriage. While Jardine's shares gained in Singapore, Astra's stock declined 1.5% to 6,600 rupiah in Jakarta trading, underperforming the broader Jakarta Composite Index, which rose roughly 0.8%.
Broader Market Context and Risks
The positive performance in Singapore was supported by broader market strength, with the Straits Times Index climbing approximately 0.5%. However, the situation in Indonesia presents clear risks for Jardine. If the mine dispute prolongs or if the state assumes control of the asset, it could impact dividends, capital returns, and cash flows. A government task force spokesperson described the permit revocation as "final," though noted companies could still discuss their assets with relevant agencies.
Investors are also looking ahead to Jardine's full-year financial results, scheduled for release on March 10. The stock will trade ex-dividend on March 19, with the annual meeting set for May 7 according to the company's calendar. Market participants will be monitoring for updates on the Indonesian situation and the outlook for Jardine's key holdings.
