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BUMN Emiten Stock Encourage Improvement of Domestic Stock Exchange

Indonesia Stock Exchange
Indonesia Stock Exchange

JAKARTA – The Indonesian stock exchange has begun to show improvement after experiencing considerable pressure due to the impact of the Covid-19 pandemic. The Jakarta Composite Index (IHSG) fell to 3,900 last March before slowly rising to 5,400 on Tuesday.

Analyst of Sekuritas Indonesia, Anugerah Zamzami. Said that the improving trend of the IHSG has been boosted by the performance of shares of state-owned enterprises (BUMN), especially in the last few months.

“The majority of state-owned companies’ financial performance is still decreasing on an annual basis. However, on a quarterly basis many state-owned companies have shown improvement in the third quarter compared to the second quarter,” said Anugerah, Wednesday.

Reflecting on the movement of BUMN shares in the BUMN 20 Index, Anugerah said, the decline was still deeper than the IHSG. In terms of ytd, 15.8 percent corrected the BUMN 20 index. Meanwhile, the correction for the IHSG was lower at 13.3 percent. 

However, in the last three months to six months. Anugerah assessed that the BUMN 20 index had a fairly good performance compared to the IHSG. In the last six months the BUMN 20 index has increased by 36.5 percent while the IHSG has only increased by 18.8 percent.

According to Anugerah, shares of state-owned companies that contributed to the increase in the stock exchange came from the banking sector. Which reached 35 percent. In addition, other sectors that contributed to boosting performance stock market were mining and basic and chemical industries. 

In general, Anugerah admitted, the performance of BUMN stocks’ shares did not have a significant influence on the stock exchange performance. This is because not all BUMNs have a large market capitalization. Of the 20 issuers with the largest weight on the stock exchange. Banking stocks that dominated the increase were BBRI, and BBNI.

The Development Of BUMN Stock Is Still Not Optimal

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Meanwhile, CSA Research Institute Senior analyst Reza Priyambada said SOE issuers’ shares they often considered to be leading stocks. Especially banking stocks and other large market cap SOEs. However, so far a number of BUMN shares have still shown declining performance.

“Apart from the depressed performance perceptions in real terms. Their performance has also decreased due to the impact of this pandemic,” said Reza. 

On the other hand, with the improvement in Indonesia’s macroeconomic conditions where business activities are resuming business. I hope it that BUMN performance will improve. So that the movement of its shares can also increase.

Head of research at MNC Sekuritas, Edwin Sebayang, assessed that the increase in BUMN share prices has not been maximized. Including WIKA, ADHI, PTPP, WSKT, WTON, WSBP, PGAS, PTBA, BBRI, BBNI, and BBTN. According to him, the achievement of financial performance until the third quarter of this year has not been satisfactory. 

“Achievement of financial performance until the end of the third quarter of 2020 was less than satisfactory. Which had an impact on share prices,” said Edwin. 

Edwin said that the increase in the IHSG so far has been supported by domestic and global sentiment, including the improvement of the economy in the third quarter of 2020, development of the Covid-19 vaccine, the issuance of the Creation omnibus law on the Cipta Kerja, absorption of the National Economic Improvement budget until the presidential election of the United States (US).

Indo Premier Sekuritas analyst, Mino said, shares of state-owned companies were quite affected at the beginning of the pandemic. However, Mino added, the performance of BUMN shares would improve along with the economic recovery process and other positive factors.

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