State-controlled airline Garuda Indonesia plans to raise capital through a rights issue in semester II of this year. Funds assembled through this issue will be used to expand the company's fleet. In 2011, Garuda issued 30 percent of its shares on the Indonesia Stock Exchange (IHSG) although the House of Representatives (DPR) had in fact approved up to 40 percent. The remaining 10 percent will thus be sold this year.
Update COVID-19 in Indonesia: 70,736 confirmed infections, 3,417 deaths (9 July 2020)
6 July 2020 (closed)
USD/IDR (14,446) -14.00 -0.10%
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Jakarta Composite Index (5,052.79) -23.38 -0.46%
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The Indonesia Stock Exchange (IDX) is serious about becoming the largest stock exchange in the ASEAN region - in terms of transaction value and the number of listed companies - by the year 2020. Currently, Singapore remains the largest stock exchange in the ASEAN region with a market capitalization of about USD $640 billion (in 2015), nearly twice the size of Indonesia's stock exchange (the market capitalization is the number of total outstanding shares at the exchange multiplied by their stock prices).
Fundraising in Indonesia's capital markets touched a multi-year low in the first quarter of 2016. Based on data from Bloomberg, only IDR 142.1 billion (approx. USD $10.8 million) was raised through rights issues and initial public offerings (IPOs) on the Indonesia Stock Exchange in Q1-2016, the lowest figure in the past seven years. Analysts expect fundraising in the capital markets of Indonesia to improve from the second quarter of 2016 onward due to expected accelerating economic growth and Bank Indonesia's lower interest rate environment.
A number of companies listed on the Indonesia Stock Exchange (IDX) have already announced their dividend pay-out ratios for 2015. Ten companies set the pay-out ratio for 2015 below the pay-out ratio in the preceding year. It is assumed that these firms cut back on dividend payments to shareholders in order to have more working capital and room for capital expenditure and investment as the Indonesian economy is expected to accelerate in 2016 with a GDP growth pace of 5.3 percent (y/y). Amid this improving macroeconomic context, these firms prefer to invest for further business expansion.
Although Indonesia's benchmark Jakarta Composite Index has risen 4.81 percent since the start of 2016 (thus being among the world's best-performing benchmark stock indices so far this year, especially if the 5.17 percent appreciation of the rupiah is included into the calculation), not all Indonesian blue chip stocks, or big caps, have risen. Several examples are Blue Bird, Bank Pan Indonesia, Bank Permata, Global Mediacom, Surya Citra Media, and Sarana Menara Nusantara. Why did these stocks not rise so far in 2016? We zoom in on three cases.
Indonesian stock markets have garnered a good deal of attention to start the year, with the Jakarta Composite Index (JKSE) showing gains of more than 3.2 percent for the period. This is something of an anomaly when we look at the global stock market as a whole, given the fact that most investors have already started to brace for a generalized tightening cycle in interest rates in several key economies.
Although the Jakarta Composite Index, Indonesia's benchmark stock index, fell 12.13 percent during the year 2015, not all shares of listed companies were in red territory last year. It is interesting to take a look at those shares, particularly the blue-chip stocks, that still managed to rise amid unconducive domestic and global economic conditions. Therefore, we present the top gainers of the LQ45 index. This LQ45 index, created by the research and development division of the Indonesia Stock Exchange, consists of 45 stocks that meet specific criteria.
Shares of newly-listed Dua Putra Utama Makmur soared on Tuesday (08/12) at its debut on the Indonesia Stock Exchange (IDX). Shares of the fish processing firm, the 15th company to be welcomed on the IDX in 2015, climbed 50 percent to finish at IDR 825 per share. Dua Putra Utama Makmur offered 40 percent (1.67 billion new shares) of its total equity at a price of IDR 550 per share, hence raising IDR 918.5 billion (approx. USD $67 million).
A selection of corporate earnings reports (covering net profit and revenues in the first nine months of 2015) of Indonesian companies that are listed on the Indonesia Stock Exchange (IDX) is presented by Indonesia Investments below. The companies are 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.
Before the end of the year, fast-moving consumer goods (FMCG) company Kino Indonesia plans to conduct an initial public offering (IPO) on the Indonesia Stock Exchange. The company aims to raise around IDR 1 trillion (approx. USD $74 million) by offering 228.6 million new shares, equivalent to 16 percent of its enlarged capital, to the public. The price range of has been set between IDR 3,750 and IDR 5,225 per share. Credit Suisse, Deutsche Bank and Indo Premier Securities launched the float on Tuesday (10/11) with book-building to continue until 20 November.
Indonesian assets weakened on Friday (06/11) on expectation that US non-farm payrolls and US employment data would improve, suggesting that a Fed Fund Rate hike may occur in December 2015. Such expectations were correct. After Indonesian and other Asian markets had closed on Friday, the US Labor Department announced that October payrolls rose 271,000 (the largest increase this year), while the US unemployment rate touched a seven-year low at 5 percent. Furthermore, the average hourly earnings over the past 12 months climbed by the most since 2009.
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