Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Lippo Group’s Matahari stocks fall more than 22% after retailer cuts dividend payout

The move from analysts downgrading their view on the firm also contributed to the stock decline.

Indonesian conglomerate Lippo Group's retail arm Matahari Department Store saw investors dumping its shares on Tuesday causing the stock to plunge by more than 22%, after the group cut its dividend pay-out in lieu of weak earnings. The move from analysts downgrading their view on the firm also contributed to the stock decline.

Matahari shares fell the most since December 2011 on Tuesday after analysts downgraded the stock amid concerns on a growing e-commerce business in Indonesia threatening the retailer’s outlook.

As a result, shares of companies that are tied to Lippo Group also sank as investors were concerned that the group may lower dividends for its other businesses. Lippo Group’s Lippo Cikarang and Lippo Karawaci’s shares were lower by 7% to 9%.

Retail earnings suffer amid changing retail landscape

The retailer had shaved its dividend pay-out to 50% of net income in 2018 from 70% after its profit fell by 42%. In 2017, Matahari’s net income shrank by 5.6%, and was the first decline in at least over 5 years.

The group had said it would use the additional funds from the lower dividend pay-out ratio to support its growth strategies, such as the expansion of its specialty format stores.

In June last year, the departmental store celebrated the opening of its 155th outlet, adding to Lippo Group’s presence of more than 600 outlets located across Indonesia from different retail brands including the Matahari Department Store - such as Hypermart, and Foodmart. Lippo Group owns and operates around 70 shopping malls in the country.

Investor confidence on Lippo Group has weakened in recent months. Last year, traders abandoned shares and bonds of Lippo Group's companies after some staff with the group were arrested for investigations to a bribery case.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.