Shares on the Stock Exchange Give Up 22 Percent Return

Transactions in the Indonesia Stock Exchange (BEI) provide the greatest return for the last decade, reaching 22%. With economic growth will accelerate at 6% in the next ten years, at least the same return that will be provided by the shares of public companies listed on the Stock Exchange. The role of the capital market will be higher in the future in line with Indonesia's economic progress.

By Sugeng Riyadi - May 5, 2016

 

Benzano.com - Transactions in the Indonesia Stock Exchange (BEI) provide the greatest return for the last decade, reaching 22%. With economic growth will accelerate at 6% in the next ten years, at least the same return that will be provided by the shares of public companies listed on the Stock Exchange. The role of the capital market will be higher in the future in line with Indonesia's economic progress.

 

Meanwhile, President Director of PT BEI Tito Sulistio say, in the last ten years, shares in BEI returns of up to 22%, the highest in the world. Investor Awards is the highest conferment to the best issuers listed on the Stock Exchange based on fundamental and technical performance. This year is the 17th Investor Awards held by Investor Magazine.

 

Chairman of the Board of Commissioners of the Financial Services Authority (FSA) Muliaman D Hadad in his speech said that today there is no reason to doubt the Indonesian capital market development. After rising to 4.8% in 2015, this year, the pace of economic growth could reach 5.2 to 5.4% with an upward bias tendencies. The increase in stock prices will follow the pace of economic growth for the company's fundamental performance will always be the primary consideration of investors.

 

According to Hadad, hehadiran capital market has become the country needs to boost economic growth. To help enhance the role of capital markets, the FSA will continue to encourage the birth of new products and the optimization of existing products, such as sukuk or Islamic bonds and asset-backed securities. FSA determined to support the deepening of financial markets and encourage financing to support priority sectors such as tourism.

 

Delivered, the current financial condition of the industry, solid enough to face change. Capital finance industry is quite strong, as seen in the capital adequacy ratio (CAR) of around 22%, as well as risk-based capital (RBC) insurance which is well above the minimum threshold of 120%. Credit risk is also small, as reflected in the non-performing loan (NPL) ratio of 2.8% and the banking gross non-performing financing (NPF) finance 0.65%. This year, the credit is expected to increase 13%. Although still far below the highest rate 16-20% in 2010-2012, credit growth has been quite good.

 

Hadad urged the bankers to get used to the change. One of the biggest changes is the transition from the current high interest rate regime to the regime of low interest rates. Banks should no longer constantly live with high interest rates and large overhead costs. The public company, said Chairman of Indonesian Listed Companies Association (AEI) Franciscus Welirang, will continue to get used to deal with change. One big change this time is an economic stimulus package that has been launched 12 times.

 

Meanwhile, based on the IDX data, the ratio of market capitalization of the domestic stock market to gross domestic product (GDP) is still low, only about 42.22% in 2015. Market cap BEI around Rp 4,873 trillion last year, while the GDP of Indonesia Rp 11 541 trillion. It is estimated, the stock market in Indonesia is still potential to grow, especially new market capitalization of Rp 5,143 trillion by March 2016, under the Singapore and Malaysia, each of which reached Rp 8791 trillion and Rp 5,787 trillion. In fact, Indonesia's largest GDP in the ASEAN region. In
terms of number of listed companies, BEI also had 524 new issuers, whereas the Malaysian market is already 904 and Singapore 770.

 

Director of Corporate Valuation BEI Samsul Hidayat suggested, the interest of potential issuers to hold IPO shares this year remains high. BEI target at least 10-11 companies hold IPO and listed shares (listing) premiered the first half of 2016. Based on data from the Exchange, from a number of companies are planning IPOs this year, two of which are power companies, namely PT Megapower Makmur and PT Cikarang Listrindo. Megapower will sell 30.93% stake to the public, while Cikarang Listrindo reportedly began to approach a number of investors for the IPO action with emission targets USD 300 million.

 

To note, Megapower Makmur is a company engaged in the power generation sector (hydropower). The Company is a subsidiary of Malaysian business group, Bina Puri Holdings Bhd. Bina Puri controls 80% of shares Megapower Makmur. In Indonesia, Bina Puri has power plants in eight regions with a total capacity of 28 megawatts (MW). Megapower will offer 300 million new shares with a nominal value of Rp 100 per share. The removable shares equivalent 30.93% of the issued and fully paid.

 

According to Bina Puri management, listing process proposed in the second half of 2016. The transaction is not expected to have a material impact on the company's revenue ended December 31, 2016. The purpose of this corporate action is to raise capital from the capital market in Indonesia. Action IPO is also expected to make the company's reputation increases. The management Cikarang Listrindo, according to Bloomberg sources, will start the bidding IPO shares to investors at pertengahaan May 2016. However, the period must have been fixed deals. The company aims to raise about US $ 300 million to sell 20% stake. [Sugeng R]

Source : http://benzano.com/saham-di-bei-berikan-return-hingga-22-persen/