Seven Trading Days, Rimo Stock Price Plummets 71 Percent

PT Rimo International Lestari Tbk (RIMO) share price closed down Rp 62 per share (24.41 percent) at Rp 192 per share on Wednesday (November 8th), following a suspension by the stock exchange authority the previous day due to unusual market activity (UMA).

The share price of RIMO, traded under the code RIMO, had shrunk by 70.91 percent over seven consecutive days from Rp 660 per share on October 27, 2017. Over the last four days, the RIMO share price fell by an average of approximately 25 percent per day. The Indonesia Stock Exchange (IDX) ultimately halted trading of RIMO shares again after a significant one-day drop on Wednesday (November 8th).

Technically, the RIMO share price is considered very cheap, as the 14-day Relative Strength Index (RSI) is at 21.9 on a scale of 0-100. An RSI below 30 indicates oversold conditions, while above 70 indicates overbought conditions. Fundamentally, RIMO's sales for the January-September 2017 period surged 2,597 percent to Rp 247 billion year-on-year (YoY). The company, which has shifted its business line from retail to real estate, recorded a profit of Rp 123.75 billion, compared to a loss of Rp 2.05 trillion in the same period the previous year.