Garuda Stock Performance Amidst Turbulence

PT Garuda Indonesia Tbk (GIAA) shares closed down 0.5% at Rp 402 per share. This is despite the stock strengthening to Rp 380 per share on Wednesday (July 3rd) and Rp 404 on Thursday (July 4th). Fluctuations in the state-owned airline's share price have been triggered by various issues.

Garuda shares once recorded a high of 12.5% to Rp 630 per share on Wednesday, March 6th. This increase was due to an operating cooperation agreement (KSO) that resulted in an option to acquire at least 51 percent of PT Sriwijaya Air shares by Garuda.

However, Garuda's share price fell 0.99 percent on April 24, 2019, after two of its commissioners declared the 2018 financial statements irregular during the Annual General Meeting of Shareholders (RUPST). Following this, Garuda was hit by negative sentiment from sanctions imposed by the Ministry of Finance, the Financial Services Authority (OJK), and the Indonesia Stock Exchange (BEI) for non-compliant 2018 financial reporting. Its share price plummeted by 7.58% to Rp 366 per share on Friday, June 28th.

When the government requested airlines to lower low-cost carrier (LCC) ticket prices, Garuda's share price also corrected by 2.7% to Rp 378 per share on Tuesday, July 2nd.

(Read Databoks: [Asian Markets Weaken, IHSG Down 0.35%](https://databoks.katadata.co.id/datapublish/2019/07/03/bursa-asia-melemah-ihsg-turun-035))