But with the recent spike in market volatility, the usual relationship between the pair has collapsed to levels unseen. The share price ratio of Jardine Matheson to Jardine Strategic was 2.59 times as at market close. This compares with the long-term average ratio of 1.71 times based on Mr Blennerhassett's calculations, using prices from 2002 up to now.
"It's completely distorting things . . . Earlier this week at a ratio of 2.12 times, I thought it was a buy. Then it widened to 2.29 times. Then 2.37 times yesterday. Today, it touched above 2.6 times. Now, I'm running out of superlatives." United First Partners head of Asian research Justin Tang noted that market watchers have witnessed a whole lot of unusual events in the past two weeks, such as US Treasury yields rising even as stock prices were plummeting."To understand Jardine Strategic's fall, it's best to look at its constituents. People sell those components, and it feeds through," he said.
JC&C owns a 50.1 per cent interest in Indonesian conglomerate Astra International, which makes it a loser if the Indonesian rupiah continues its freefall.
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