Eka Sari Lorena, an Indonesia-based transportation company, is the next company that will conduct an initial public offering (IPO) on the Indonesia Stock Exchange in order to gain funds for further business expansion. Last year, Eka Sari Lorena was denied to go public as it did not get approval from market regulators. After securing approval this year, the company offers 150 million shares (43 percent of its enlarged equity) in an IPO which starts today (01/04). Its listing on the Indonesia Stock Exchange is scheduled for 15 April 2014.

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Pembangunan Perumahan (PP), an Indonesia-based government-controlled construction and investment company, plans to list its subsidiary PP Properti on the Indonesia Stock Exchange through an initial public offering (IPO). The subsidiary is expected to list 30 percent of its shares on the stock exchange and aims to raise between IDR 1.2 and 1.5 trillion (roughly USD $119 million) through this corporate action. The IPO is planned to be conducted in the first quarter of 2015. The possible lead underwriters are Mandiri Sekuritas and Bahana Securities.

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PTT Plc, a Thailand-based energy company which conducts coal mining activities in Sebuku, Jambayan and Laung (all on the island of Kalimantan), is planning to list its subsidiary, Sakari Resources, on the Indonesia Stock Exchange through an initial public offering (IPO). PTT Plc has been active in Indonesia's mining sector since 2008 when it acquired a 94 percent stake in (Singapore-listed) Sakari Resources. After the acquisition, Sakari Resources delisted from the Singapore Stock Exchange.

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Beritasatu Media Holdings in cooperation with the Indonesia Stock Exchange (IDX) officially launched its Index Investor33 on Friday (21/03). This index consists of 33 listed companies at the IDX that share strong fundamentals, assessed through both technical and fundamental analyses. According to Hoesen, Director of Corporate Valuation at the IDX, the 33 companies have influenced the performance of the Jakarta Composite Index (Indonesia's benchmark stock index) considerably in recent years.

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The Indonesian rupiah exchange rate and benchmark stock index (IHSG or Jakarta Composite Index) both plunged severely after the US Federal Reserve announced on Wednesday (19/03) to cut another USD $10 billion from its bond-buying program (quantitative easing). Moreover, speculation arose that US interest rates may increase in 2015 (the US central bank had kept interest rates close to zero for over five years to stimulate economic growth). It led to tumbling stocks, bonds and currencies across Asia on Thursday (20/03).

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According to the prospectus that was published on Monday (17/03), Graha Layar Prima will offer 140 million new shares, or 46.11 percent of the company's enlarged capital, to investors in an initial public offering (IPO) on the Indonesia stock exchange (IDX). Graha Layar Prima operates a cinema chain (known as Blitzmegaplex) that is present in several big Indonesian cities, including Jakarta, Bandung, Bekasi, Tangerang and Balikpapan. Funds that are gained through the IPO will all be used for the establishment of seven new cinemas.

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Indonesia's new Financial Services Authority (OJK) is currently processing plans of several companies that intend to conduct their initial public offering (IPO) on the Indonesia Stock Exchange in the first quarter of 2014. Continued enthusiasm of companies for a listing on the Indonesia Stock Exchange (IDX) indicates bullish sentiment. Director of the IDX, Ito Warsito, expects a total of 15 new listings in Q1-2014, while the target for full year 2014 remains at 30. In 2013, 31 companies were added on the IDX.

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With the new minimum requirement regarding the free float of shares (the portion of shares that are in the hands of public investors) at 7.5 percent of a company’s total enlarged capital, the Indonesia Stock Exchange (IDX) urges companies that do not meet this requirement to conduct a rights issue in order to raise the number of publicly issued shares. One of these companies is HM Sampoerna, Indonesia's largest tobacco company. Currently, 98.18 percent of the company is owned by international cigarette and tobacco giant Philip Morris.

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Indonesian stocks and the country's currency feel the negative impact of the further winding down of the Federal Reserve's bond-buying program (quantitative easing). Yesterday (29/01), it was announced that the Fed will cut the bond-buying program by USD $10 billion to USD $65 billion per month. Among market participants concern emerged about the stability of emerging economies amid the tapering as capital outflows are expected. After opening, the benchmark stock index of Indonesia (IHSG) immediately fell more than 1 percent.

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On Wednesday (29/01), the Federal Reserve (Fed) announced to cut its massive bond-buying program (quantitative easing, QE) by another USD $10 billion after the FOMC meeting, while maintaining interest rates close to zero. Originally, the Fed's QE program, implemented in September 2012, totalled USD $85 billion per month but after the cuts in December 2013 and January 2014, it is now wound down to USD $65 billion per month and if the pace of tapering continues, the program might be over by the end of 2014.

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The week ended well for both the Indonesian rupiah exchange rate and the benchmark Jakarta Composite Index (IHSG). Based on the Bloomberg Dollar Index, the rupiah appreciated 0.30 percent to IDR 11,413 per US dollar at the end of Friday's trading day (16/05). Meanwhile, the IHSG surged 0.80 percent to finish just above the psychological level of 5,000 points. The good performance was supported by investors' positive response towards the latest political developments in Indonesia.

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The benchmark stock index of Indonesia - known as the Jakarta Composite Index or IHSG - rose 0.17 percent to 4,921.39 points on Tuesday (13/05), impacted by investors' reaction to positive earnings reports of Indonesian coal miners in the first quarter of 2014. Today, foreign investors recorded net buying of IDR 64 billion (USD $5.6 million) and accounted for 31 percent of trading activity. However, investors remain cautious ahead of the presidential election that is scheduled for 9 July 2014 and wait for more clarity about the (vice) presidential candidates that will compete.

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ICRA Indonesia, an independent credit rating agency and subsidiary of ICRA Ltd. (associate of Moody's Investors Service), publishes a monthly newsletter which provides an update on the financial and economic developments in Indonesia of the last month. In the April 2014 edition, a number of important topics that are monitored include Indonesia's inflation rate, the trade balance, the BI rate, the IDR rupiah exchange rate, and gross domestic product (GDP) growth. Below is an excerpt of the newsletter:

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Contrary to most Asian stock indices, the benchmark stock index of Indonesia (known as IHSG or the Jakarta Composite Index) declined on Thursday (08/05). Positive sentiments that were provided by the BI rate (Indonesia's benchmark interest rate) that was kept at 7.50% in today's Bank Indonesia Board of Governors' Meeting, and China's higher-than-expected trade balance in April 2014 (USD $18.5 billion), were offset by the depreciating rupiah exchange rate and foreign net selling of Indonesian stocks. The IHSG fell 0.02 percent to 4,860.89 points.

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Completely opposite to our expectations, the benchmark stock index of Indonesia (known as the Jakarta Composite Index or IHSG) managed to climb 0.57 percent to 4,862.02 points on Wednesday (07/05). The gain was unexpected as there were no clear factors that could provide positive market sentiments. Moreover, today's Asian stock indices were mostly down. Coincidence or not, tomorrow Bank Indonesia will announce whether its benchmark interest rate (BI rate) - currently set at 7.50 percent - will be changed or maintained.

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As I have mentioned before, Indonesia's benchmark stock index (better known as the Jakarta Composite Index or IHSG) runs the risk of declining amid a lack of domestic or external positive market sentiments. Despite the indices on Wall Street being up on the higher than expected markit services PMI as well as ISM-non manufacturing PMI, it was unable to uplift sentiments in Jakarta. Market participants seem to wait & see in the first week of May 2014, evidenced by the reduced trading volume and value of transactions.

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Indonesia Investments presents a selection of corporate earnings reports (covering the first quarter of 2014) of Indonesian companies that are listed on the Indonesia Stock Exchange (IDX), categorized by sector: (1) agriculture and mining, (2) basic industry and chemicals, (3) miscellaneous industry, (4) consumer goods, (5) property and real estate, (6) infrastructure, utilities and transportation, (7) finance, and (8) trade, services and investment. The tables display both net profit (loss) and revenues, together with year-on-year (yoy) growth.

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The benchmark Indonesia stock index (IHSG or Jakarta Composite Index) moved sideways on Monday's trading day (05/05) influenced by Indonesia's disappointing GDP growth result in the first quarter of 2014 in combination with mixed Asian stock indices. At the start of the day, the index was up as investors believed that the Q1-2014 GDP growth result would be in line with expectations. However, after Statistics Indonesia announced the growth rate, the IHSG fell, although stayed in the green zone.

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Mostly declining Asian stock indices, led by Hong Kong's Hang Seng Index (HSI) and the Shanghai Stock Exchange Composite, had a negative influence on the performance of Indonesia's benchmark stock index (known as the Jakarta Composite Index or IHSG) on Wednesday (23/04). Moreover, today's sharp rupiah depreciation contributed to the 0.10 percent decline to 4,893.15 points. Based on the Bloomberg Dollar Index, the Indonesian rupiah exchange rate depreciated 0.94 percent to 11,630 per US dollar.

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Despite sharp rupiah depreciation and generally falling Asian stock indices, the benchmark stock index of Indonesia (Jakarta Composite Index or IHSG) managed to climb 0.12 percent to 4,898.21 points on Tuesday (22/04). Factors that contributed to push the IHSG into green territory were dividend payment announcements and optimism regarding companies' financial performances in the first quarter of 2014. Foreign investors accounted for 34 percent of today’s total trading, recording net buying of IDR 1 trillion (USD $87.7 million).

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