Two newly-listed stocks perform well on the JSX<\/p>\n
JAKARTA (JP): The prices of two new shares listed yesterday by
\nPT Ramayana Lestari Sentosa and PT Surya Dumai Industry climbed
\nslightly despite the weak performance of most shares on the
\nJakarta Stock Exchange (JSX) yesterday, dealers said.<\/p>\n
Surya Dumai is a plywood manufacturer, Ramayana is a retailing
\nfirm.<\/p>\n
Ramayana gained 14 percent with its share prices rising to Rp
\n3,675 (US$1.50), against its initial offering price of Rp 3,200,
\nwhile Surya Dumai increased 7.5 percent to close at Rp 1,075
\nyesterday.<\/p>\n
Meanwhile, the JSX composite index dropped by 1.1 percent
\nbecause investors were uncertain as to whether or not the U.S.
\nFederal Reserve would increase interest rates.<\/p>\n
The JSX composite index ended 6.45 points lower at 571.73
\npoints yesterday with decliners outnumbering gainers 73 to 37.<\/p>\n
Ramayana and Surya Dumai listed a total of 750 million shares
\nwith a combined market capitalization of Rp 1.52 trillion,
\nbrining the total number of shares listed on the JSX to 57
\nbillion with a market capitalization of Rp 183 billion as of
\nyesterday morning.<\/p>\n
\"I would say that investors are interested in Ramayana because
\nit is traded at a discount to other stocks in the sector,\" a
\ndealer from PT Peregrine Sewu Securities told The Jakarta Post.<\/p>\n
\"Moreover, Ramayana has a higher profit margin and higher
\nturnover compared to other companies like Matahari. No wonder
\nMatahari's share prices continued to decline over the last few
\ndays.\"<\/p>\n
The dealer, who asked not to be named, said that Ramayana's
\nstrong performance on its first day on the secondary market was
\nnot surprising because its price had already gone up to Rp 3,650
\non the gray market before the listing.<\/p>\n
Commenting on Surya Dumai, another dealer at a foreign
\nbrokerage said: \"Although the price rose to Rp 1,075, the larger
\npart of today's transactions were executed below that level.\"<\/p>\n
He argued that Surya Dumai share prices would have been lower
\nthan the initial offering price of Rp 1,000 if its underwriters
\nhad not maintained the price.<\/p>\n
The performance of Surya Dumai's shares has been clouded by
\nhesitation on plywood prices and the company's ability to procure
\nraw materials.<\/p>\n
Surya Dumai is the first public company operating in the
\nplywood industry. The sustainability of the company's raw
\nmaterial supply and its forest management were audited by PT
\nSucofindo, the surveying agency appointed by the Ministry of
\nForestry.<\/p>\n
According to PT Sucofindo, only 52 percent of Surya Dumai's
\n738,470-hectare concession areas can be used effectively for
\nlong-term operations.<\/p>\n
Surya Dumai's president, Citra Gunawan, said yesterday that
\nplywood prices have increased since the first quarter of this
\nyear, but that investors were late in learning of the rise.<\/p>\n
Gunawan also said that Surya Dumai has projected a 61 percent
\nincrease in its net profit to Rp 45 billion this year from Rp 28
\nbillion of last year. The company's shares were traded at a price
\nearning ratio of 7.2 times this year with forecasted earnings per
\nshare of Rp 134.<\/p>\n
Ramayana was established in 1983 by the Paulus Tumewu family
\nand currently operates 45 stores with a total space of 240,000
\nsquare meters. It expects to book a profit of Rp 61 billion this
\nyear compared with last year's figure of Rp 43 billion.<\/p>\n
\"Net sales are expected to reach Rp 850 billion this year and
\nRp 1.1 trillion next year, against last year's figure of Rp 630
\nbillion,\" a Ramayana executive said. (alo)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/two-newly-listed-stocks-perform-well-on-the-jsx-1447893297",
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