Debutants perform well on stock exchange

JAKARTA. Newly listed companies in the Indonesia Stock Exchange (IDX) performed well despite the bearish condition of the market during the first semester of this year.

Almost all of the market debutants who entered the exchange during the first six months booked significant gains during their initial listing on the exchange. They include PT Minna Padi Investama, PT Tiphone Mobile Indonesia, PT Surya Esa Perkasa, PT Bekasi Fajar Industrial Estate, PT Supra Boga Lestari and PT Trisula International.

Most recent debutants PT Kobexindo Tractors and PT Toba Bara Sejahtera, which listed their shares last Thursday and Friday, booked gains of about 10 percent during the first day of trading.

Bekasi Fajar posted the highest gain. The company’s shares rose by 67 percent to Rp 285 from its Initial Public Offering (IPO) price of Rp 170 (0.18 US cents) shortly after its first trading day in late April. Surya Esa shares also performed well in its first day of trading, rising 49 percent higher at Rp 910 compared to its IPO price of Rp 610.

The price of liquefied petroleum gas (LPG) company and property developer Bekasi Fajar’s shares continued to increase until the end of the first semester as investors continued to buy its shares on the promising prospect of its business, analysts said.

Surya Esa’s share price has increased nearly 295 percent up to last Friday’s close at Rp 2,400, compared to its IPO price last February of Rp 610.

Shares in Minna Padi (PADI) and Tiphone (TELE), both were listed in January, rose 59 percent and 40 percent respectively compared to their IPO prices.

Surya Boga — the operator of daily needs Ranch Market — and fashion retailer Trisula International, first traded in June, were also among successful debutants. The companies’ share prices closed higher and continued climbing until last Friday to mark increases of 64 percent and 3 percent respectively.

The stock market has begun climbing again over the past several days after a sharp decline in June. The Jakarta Composite Index, the main price indicator at the IDX, rebounded on Tuesday to break the 4,000-psychological mark for the first time since it fell to this year’s low of 3,654 on June 4.

Capital market analyst Edwin Sinaga said that the sharp gains in prices of the newcomers during their first trading day, particularly those entering the market in June and July was because the small size of their IPOs.

“Some of the companies have cut down their IPO size and lowered their offering price. This has resulted in a significant increase in their price during the first day of trading,” Edwin said.

Five more companies are set to enter the capital market this week. They are pay TV operator PT MNC Sky Vision, telecommunication devices retailer PT Global Teleshop, lender PT Bank Pembangunan Daerah Jawa Timur, bottled water producer PT Tri Banyan Tirta and property developer PT Gading Development. (Raras Cahyafitri/ The Jakarta Post)