JAKARTA. The shares of Salim Group issuers recorded the most positive price movements this year, compared to other conglomerate issuers. Since the beginning of the year, the shares of the group have been recording an average high price rise with reasonable fluctuation.
There are at least four companies of the Salim Group whose shares are the most attractive to investors, PT Indofood Sukses Makmur Tbk (INDF), PT Indofood CBP Sukses Makmur Tbk (ICBP), PT Salim Ivomas Pratama Tbk (SIMP) and PT PP London Sumatra Indonesia Tbk (LSIP) , All four recorded an average rise of 41%.
INDF recorded the highest increase by 49% on year to date (ytd) basis, followed by SIMP, LSIP, and ICBP that rose by 48%, 39%, and 30%, respectively.
Analyst at Binaartha Sekuritas Reza Priyambada said that these records related to the Salim Group’s strategy to control their corporate actions.
Investors estimated, this implied that the group was focusing on maintaining market penetration. In other words, the fundamentals and the market shares of Salim Group will remain solid. Therefore, analysts estimate that the shares of Salim Group are worth to collect in 2017.
Conversely, the prices of MNC Group’s shares in average dropped by 15%. PT Global Mediacom Tbk (BMTR) recorded the most significant decrease by 44% among other MNC’s issuers. Subsequently, the shares prices of PT MNC Investama Tbk (BHIT) and PT Media Nusantara Citra Tbk (MNCN) dropped by 17% and 5%, respectively. Among other MNC’s issuers, only PT MNC Land Tbk (KPIG) that could record an increase of 6%.
Reza said, the current conditions of media sector are not much different with the last year. Consumption sector, which usually drives major advertisement expenditures, has not yet recovered, whereas, the advert expenditures are the main source of media sector.
Analyst at Mandiri Sekuritas Adrian Joezer said, the viewer shares of MNCN in November stood at the level of 35, dropped by 150 bps compared with the previous month. “MNC was still on the top during the prime time, despite the viewer shares dropped,” Adrian stated on a research.
Reza said that the purchasing power will improve in the next year. This will subsequently drive the consumption sector. “Therefore consumption sector will spend larger advertising expenditures,” he added.
Lippo Group’s shares also recorded negative performance. The shares prices dropped by 10% since the beginning of the year, due to the negative performance of property sector.
The prices of LPKR and LPCK’s shares dropped by 28% and 27%, respectively. As is known, the property sector experienced negative sentiment due to the low revenues of marketing sales.
Meanwhile, the shares of PT Bumi Resources Tbk (BUMI) of Bakrie Group have skyrocketed from Rp 50 per share since the beginning of 2016 to Rp 68 per share as of August 2016. To date, the prices of BUMI’s shares have increased by 300% to Rp 276 per share.
Followed BUMI, the shares of PT Bumi Resources Mineral Tbk (BRMS) increased by 29% from Rp 50 per share to Rp 66 per share. Analysts estimated that the increases in the shares prices were driven by the debts restructuring of the two issuers. (Muhammad Farid/Translator)