Two newly-listed stocks perform well on the JSX

Two newly-listed stocks perform well on the JSX

JAKARTA (JP): The prices of two new shares listed yesterday by
PT Ramayana Lestari Sentosa and PT Surya Dumai Industry climbed
slightly despite the weak performance of most shares on the
Jakarta Stock Exchange (JSX) yesterday, dealers said.

Surya Dumai is a plywood manufacturer, Ramayana is a retailing
firm.

Ramayana gained 14 percent with its share prices rising to Rp
3,675 (US$1.50), against its initial offering price of Rp 3,200,
while Surya Dumai increased 7.5 percent to close at Rp 1,075
yesterday.

Meanwhile, the JSX composite index dropped by 1.1 percent
because investors were uncertain as to whether or not the U.S.
Federal Reserve would increase interest rates.

The JSX composite index ended 6.45 points lower at 571.73
points yesterday with decliners outnumbering gainers 73 to 37.

Ramayana and Surya Dumai listed a total of 750 million shares
with a combined market capitalization of Rp 1.52 trillion,
brining the total number of shares listed on the JSX to 57
billion with a market capitalization of Rp 183 billion as of
yesterday morning.

"I would say that investors are interested in Ramayana because
it is traded at a discount to other stocks in the sector," a
dealer from PT Peregrine Sewu Securities told The Jakarta Post.

"Moreover, Ramayana has a higher profit margin and higher
turnover compared to other companies like Matahari. No wonder
Matahari's share prices continued to decline over the last few
days."

The dealer, who asked not to be named, said that Ramayana's
strong performance on its first day on the secondary market was
not surprising because its price had already gone up to Rp 3,650
on the gray market before the listing.

Commenting on Surya Dumai, another dealer at a foreign
brokerage said: "Although the price rose to Rp 1,075, the larger
part of today's transactions were executed below that level."

He argued that Surya Dumai share prices would have been lower
than the initial offering price of Rp 1,000 if its underwriters
had not maintained the price.

The performance of Surya Dumai's shares has been clouded by
hesitation on plywood prices and the company's ability to procure
raw materials.

Surya Dumai is the first public company operating in the
plywood industry. The sustainability of the company's raw
material supply and its forest management were audited by PT
Sucofindo, the surveying agency appointed by the Ministry of
Forestry.

According to PT Sucofindo, only 52 percent of Surya Dumai's
738,470-hectare concession areas can be used effectively for
long-term operations.

Surya Dumai's president, Citra Gunawan, said yesterday that
plywood prices have increased since the first quarter of this
year, but that investors were late in learning of the rise.

Gunawan also said that Surya Dumai has projected a 61 percent
increase in its net profit to Rp 45 billion this year from Rp 28
billion of last year. The company's shares were traded at a price
earning ratio of 7.2 times this year with forecasted earnings per
share of Rp 134.

Ramayana was established in 1983 by the Paulus Tumewu family
and currently operates 45 stores with a total space of 240,000
square meters. It expects to book a profit of Rp 61 billion this
year compared with last year's figure of Rp 43 billion.

"Net sales are expected to reach Rp 850 billion this year and
Rp 1.1 trillion next year, against last year's figure of Rp 630
billion," a Ramayana executive said. (alo)