BNI makes successful capital market debut

BNI makes successful capital market debut

JAKARTA (JP): State-owned Bank Negara Indonesia (BNI) made a
successful debut on the Jakarta Stock Exchange yesterday, gaining
nearly 50 percent on the first day of its listing.

Securities dealers said BNI, the first state-owned bank to
float shares on the stock exchange, was warmly received by
foreign and local investors.

The bank's share price surged by around 40 percent to Rp 1,
200 in less than an hour after trading began. But after peaking
at Rp 1,300 the shares lost ground as individual investors
started taking profits, a dealer at a major brokerage company
said.

The shares closed at Rp 1,250 or 47 percent above the initial
price offering of Rp 850 with an overall transaction volume of
more than 179 million shares on the regular trading board.

The bank's significant gain pushed up the JSX Composite Index
to close 15.37 points or 2. 5percent higher at 628.23 from 621.86
on Friday.

"The demand for the BNI shares is huge," she said. "It seemed
that investors who received no significant allotment in the
primary market, took the chance to make a big order."

Securities analysts estimated that BNI share prices would
continue to rise, given that yesterday's closing price was lower
than those of the other listed banks.

"I believe that with the existing demand, BNI's share price
still has room to increase further," a securities analyst said.

But senior analyst Sjahrir believed the high prices would not
last because the rise was mainly caused by "psychological
reasons".

"It don't think the price will stay at its current level in
the next few weeks," he said.

BNI president Widigdo Sukarman said the market's positive
response to BNI's initial listing reflected the public's
confidence in the bank and the country's banking industry.

"I am very happy about this," he said after witnessing the
bank's initial listing on the exchange. "It also means that we
have to work harder to maintain their confidence."

Several senior officials including Minister of Finance Mar'ie
Muhammad witnessed the bank's listing.

BNI, Indonesia's largest commercial bank, sold 1.08 billion
new shares, or around 25 percent of its enlarged capital, in the
public offering. The shares, with a nominal value of Rp 500, were
sold for Rp 850 (around 34 U.S. cent) each.

The bank's offering was oversubscribed by almost 350 percent
with foreign investors accounting for most orders.

PT Danareksa Sekuritas, the offering's lead underwriter, said
there were 4.84 billion orders.

Foreign investors subscribed to 2.88 billion shares and
domestic investors to 1.96 billion.

BNI, Indonesia's largest state-owned bank with around Rp 32.4
trillion ($14.09 billion) in total assets on June 30, 1996, is
the fifth state firm to list on the exchange since 1991.

The other listed state firms are Semen Gresik,
telecommunications companies PT Telkom and PT Indosat and tin
miner PT Tambang Timah. (hen)