Bakrie Group’s shares rising

JAKARTA. This is the hottest issue in the stock exchange in this week! The shares of Bakrie Group on Wednesday (25/1) were concurrently upgraded, after being stagnant at the price of Rp 50 per a share in a long time period.

The shares of PT Bumi Resources Tbk (BUMI) increased by 1.25% on Wednesday (25/1) compared with the previous day. Along this year, the price of BUMI’s shares had been stronger by around 74.82%.

BUMI also booked transaction value of Rp 644.67 billion on Wednesday (25/1). This was the highest transaction value on that day. Meanwhile, the market capitalization of BUMI has increased by 872% from Rp 2.04 trillion in 2016 to Rp 17.8 trillion.

Some predicted that the increase in BUMI’s shares prices was driven by the inclusion of BUMI’s shares on LQ45 index. Director and Corporate Secretary of BUMI Dileep Srivastava said that the inclusion BUMI to LQ45 index indicates the positive prospect of this issuer. According to him, to date the price of BUMI’s shares have been undervalued compared with the performance prospect.

“BUMI has booked net profits in the third quarter of 2016. We predict that the net profits of the issuer would have increased as of the end of 2016,” Dileep told KONTAN, Wednesday (25/1).

Aside of BUMI, PT Darma Henwa Tbk (DEWA) has also booked the increase in share price. During one day period, DEWA’s share price has increased by 21.92% to the level of Rp 89 per a share.

The share price of PT Energu Mega Persada Tbk (ENRG) has also increased by 4.55% to Rp 69 per a share. Meanwhile, the share price of PT Bakrie Sumatra Plantations Tbk (UNSP) has sharply increased by 18.97% to Rp 69 per a share.

Remain alert

Does this condition mark the rise of Bakrie Group in the stock exchange? It remaind unclear. But in general, the increase in the shares prices of Bakrie Group’s issuers was driven by two sentiments, namely the increase in commodity price and debt restructuring.

However, analyst at Semesta Indovest Aditya Perdana Putra said, the shares of Bakrie Group’s issuers still have potential risks, despite of high liquidity, as well as transaction volume and frequency. Therefore, the investors have to remain alert.

Analyst at First Asia Capital David Sutyanto estimates that BUMI’s share, which was listed on LQ45, is attractive. “By selecting the shares listed on LQ45, we have minimized the liquidity risk,” he said.

(Muhammad Farid/Translator)