Market

The Central Jakarta commercial court has on Monday (June 11) ruled against the troubled textile producer Pan Brothers (PBRX) and its three subsidiaries to have the status of temporary postponement of debt payment obligations or PKPU for maximum 45 days.

Financing firm KDB Tifa Finance (TIFA), controlled by Korea Development Bank (KDB), is now under the spotlight as retail investors have voiced their objection related to no dividend payment in the past five years. 

Industrial estate and property developer Pakuwon Jati (PWON) has prepared a capital expenditure (capex) budget of Rp2.71 trillion for this year, used to accelerating development of superblock projects that are being built.

Talks about state oil and gas firm Pertamina have been dominated by appointment of Simon Aloysius Mantiri, one of trusted aides of president elect Prabowo Subianto, as chairman to replace Basuki Tjahaja Purnama (Ahok), who resigned ahead of this year’s presidential election, where once the political ally of outgoing president Joko Widodo lent his support to Prabowo’s competitor Ganjar Pranowo.

Shares of Barito Renewables (BREN) recovered 9.8% to Rp7,380 on Tuesday (Jun 11) to make a market capitalization of Rp977 trillion. Shares of Amman Mineral International (AMMN), on the other hand, ended lower by 0.63% to Rp11,875 to make a market capitalization of Rp861.1 trillion. 

Little over two years ago, on May 13, 2022 to be exact, we published an article titled ‘GOTO moves closer to GOCAP (Rp50)’ when the stock was traded at Rp194. Shares of technology firm GoTo Gojek Tokopedia (GOTO) lost 5.36% to Rp53 per share on Tuesday (June 10), to make market capitalization of Rp63.67 trillion. The stock has fallen 39% so far this year (year to date) even when the company’s management claimed improved earnings in the first quarter.

The central bank (Bank Indonesia/BI)’s survey predicts increasing retail sales , as retailers expect higher sales, stem from clothing, food beverages and tobacco, as well as spare parts and accessories. On a monthly basis, however, respondents anticipate a 1.0% (mtm) retail sales contraction as public activity normalises after the Eid-ul-Fitr season. 

Gold miner J Resources Asia Pacific (PSAB) booked profit attributable to owners of US$2.23 million in the first quarter (Q1) of 2024, against loss of US$14.98 million in the corresponding period of 2023, supported by higher gold prices. Tradingeconomics.com reported gold increased 17.2% so far this year, lastly traded at US$2293/t.oz.

Shares of state nickel firm Vale Indonesia (INCO) lost 2.92% to Rp4,320, to make market capitalization of Rp42.92 trillion, trading with P/E multiple 9.63, substantially cheaper than Harita Nickel (NCKL), which is now traded with PE multiple 14. The stock fell 2.26% so far this year, but ever reached its peak at Rp5,200 on May 29, 2024. 

Some large banks experienced a downward trend in share prices so far this year or year to date (y/y). Banks shares, which fell due to interest rate policies and the weakening of the rupiah exchange rate, are interesting to watch until the end of the year.