Indonesia Stock Exchange (IDX) has just recently updated their LQ45 list on Wednesday (25/7). IDX regularly monitors the performance of stock components included in the LQ45 calculation. Every three months, the stocks are evaluated on the movement of the order of those shares. Review and replacement of shares is done every six months, on February and August.
There are five new companies that made it to the list, Sentul City Tbk (BKSL), Elnusa Tbk (ELSA), Indah Kiat Pulp & Paper Tbk (INKP), Indo Tambangraya Megah Tbk (ITMG), dan Medco Energi Internasional (MEDC). The new stocks have been demonstrating an outstanding performance on their financial report. Three of the new companies that made it on the list are factories that stir in the mining sector. The commodity of natural resource are still in a stable condition globally although the Fed has been increasing the interest rate.
The shares of the previous LQ45, namely Global Mediacom Tbk (BMTR), Bumi Resources Tbk (BUMI), Hanson International Tbk (MYRX), Pakuwon Jati Tbk (PWON), and Trada Alam Minera Tbk (TRAM) are now out because of the consideration of liquidity and market capitalization with predetermined criteria in the past few months.
After the index is updated, the price of the stocks that were removed went down. BUMI fell by 2.36% to Rp248 per share. PWON dipped 3.57% to Rp540 per share and BMTR also dipped 5.62% to Rp470 per share. However, the stocks that took most of its toll were MYRX and TRAM that plunged 8.57% to Rp120 per share and 15.85% to Rp470 per share, respectively.
WIlliam Hartanto, an analyst in Panin Sekuritas, stated that the stock price reduction of the five issuers that were removed from LQ45 is a natural occurrence. “[It is] because of the market psychology that always catches things as positive or negative. Investment managers will always do portfolio rebalancing every time this happens,” he said on Thursday (26/7).
Sources:
IDX
Kompas
Detik