Reporter: Dityasa H Forddanta, Sandy Baskoro | Editor: Yudho Winarto
JAKARTA. Some issuers recorded higher shares prices following the Jakarta Composite Index (JCI) growth. Some issuers even have planned to conduct stock split.
For an example, the price of a share of PT Gudang Garam Tbk (GGRM) is Rp 63,750. This nominal price is higher than the share price of its competitor PT HM Sampoerna Tbk (HMSP). The nominal price of HMSP’s share price was high in some time ago. However, in the middle of 2016 HMSP conducted stock split with the ratio of 1:4.
Stock split may be driven by several factors, including the share price. Some analysts assessed that a stock may be split if the price is approaching Rp 50,000.
Aside of the price, analyst at Panin Sekuritas Frederik Rasali said that the stock split may be an option during lower transaction while the demands are high.
Some issuers even have split the stock before the price hit Rp 50,000 per a share. For an example, the price of a share of PT Mayora Indah Tbk (MYOR) before stock split was above RP 38,000. However, this issuer decided to split the stocks in August 2016. After the stock split, the share price of MYOR was lower, in average of around Rp 1,500.
In other words, the urgency of stock split does not necessarily depend on the price level. Stock split also depends on the company internal decision. For an example, the price of a share of PT Unilever Indonesia Tbk (UNVR) is Rp 42,000. However, this issuer has not yet planned to split the stocks.
High valuation
UNVR has several times split the stock. However, the high demands have jacked up the price. Lastly, UNVR split the stocks on 24 June 2004. During that time, UNVR split the stocks with the ratio of 1:10.
Without discussing the stock split, Head of Research at Maybank Kim Eng Securities Isnaputra Iskandar said, UNVR has already high valuation. “The price earning ratio (PER) of UNVR has been 40 times,” he said, Tuesday (24/1).
However, holding the stock split may bring some consequences. The share will be difficult to sell if the price rises. This may lead to liquidity squeeze.
“Imagine a minor investor with a budget of Rp 10 million. The investor may cancel to buy a share with the price of Rp 10,000, due to high portfolio risk,” Frederik said.
Some issuers under the category of big caps, such as CGRM and UNVR still maintain the high price. Likewise, some issuers under the category of small caps also maintain high price. Recently, the price of a share of PT Taisho Pharmaceutical Indonesia Tbk (SQBI) is Rp 41,000.
Stock split becomes an instrument to increase the number of shares. This strategy may increase the liquidity, while Indonesia Stock Exchange is boosting liquidity in local stock exchange.
(Muhammad Farid/Translator)
Cek Berita dan Artikel yang lain di Google News
Berita Terkait
Sejumlah saham big cap layak stock split
