Three issuers just listed on LQ45 Index

January 26, 2017, 11.28 AM  | Reporter: Elisabet Lisa Listiani Putri, Narita Indrastiti
Three issuers just listed on LQ45 Index


JAKARTA. Indonesia Stock Exchange (IDX) has revised the new list of the most liquid shares in the constituent index, LQ45. The shares of three issuers, namely PT Bumi Resources Tbk (BUMI), PT XL Axiata Tbk (EXCL), and PT PP Properti Tbk (PPRO) have been listed on the LQ45 index. Conversely, three issuers, namely PT Global Mediacom Tbk (BMTR), PT Matahari Putra Prima Tbk (MPPA), and PT Siloam International Hospitals Tbk (SILO) have been removed from LQ45 index.

Recently, those three issuers, which have just been listed on LQ45 index, have been recording increases in volume and value of transactions.
Analyst at Erdhika Elit Sekuritas Toufan Yamin said, the plan for massive debt restructuring has upgraded the shares of BUMI that have been half asleep for some time.

Meanwhile, EXCL has recorded some improvements in terms of fundamentals so that the EXCL’s shares become attractive for investors. Toufan said that EXCL has made some improvements in operational revenues. “We expect that EXCL’s performance will be much better,” Toufan said.

Another issuer, PPRO has also booked a fantastic increase in its shares prices. Toufan said that PPRO has a good market share in the similar industry.
Financial Director of PPRO Indaryanto said, PPRO was happy with the inclusion of PPRO’s shares in KOMPAS100 index and MSCI Index. “This is a considerable achievement for us in two years after the IPO,” Indaryanto told KONTAN, Wednesday (25/1).

However, analyst at First Asia Capital David Suyanto said that PPRO’s valuation has been expensive in the last year. Therefore, PPRO’s shares are potentially to be corrected.

PPRO is planning to maintain the shares’ liquidity by splitting the stocks with the ratio of 1:4 and issuing rights. David added that the shares listed on LQ45 index have proper liquidity and performance. Hence, the LQ45 index can be a reference for investment. However, the investors still need to consider the valuations of the shares.

According to Head of Research of Yuanta Securities Kim Kwie Sjamsudin, some shares on the LQ45, such as the shares of TLKM, UNVR, and ASII, are worth to be collected. Meanwhile, Toufan recommends ‘hold’ for PPRO with the target price of Rp 1,240 per a share.

(Muhammad Farid/Translator)

Editor: Rizki Caturini

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