HM Sampoerna's position was taken over by Bank Rakyat Indonesia



KONTAN.CO.ID - JAKARTA. HM Sampoerna's position was taken over by PT Bank Rakyat Indonesia Tbk (BBRI) with a market capitalization of Rp. 401 trillion on 12 November 2018. HMSP stock prices fell in recent days. The cigarette company shares sank to the third position in market capitalization, with a value of Rp 384 trillion.

The plan of the Indonesia Stock Exchange (IDX) to add free float variables in the calculation of the index (free float adjusted index) is expected to trigger a number of stocks with minimal free floats to fluctuate, including PT HM Sampoerna Tbk (HMSP).

According to Muhammad Nafan Aji, analyst at Binaartha Securities, the plan to implement free float adjusted index greatly affects the movement of HMSP shares because the free float of HMSP is only 7.5 percent. In fact, on the other hand, the fundamentals of HMSP are being blown up by positive sentiment, including next year's excise cancellation of cigarettes.


"I think this makes market participants wait for the price of HMSP to reach a certain level," Nafan said to KONTAN. He advised investors to wait for HMSP in the area of ​​IDR 3,070 - IDR 3,100.

Meanwhile BBRI, which currently records an increase in market capitalization, is fundamentally sprinkled with positive sentiments such as the third quarter 2018 financial report that showed positive performance throughout the first 9 months of 2018.

In addition, BBRI is immune to the issue of free float adjudication index because currently the public portion of state-owned banking shares is 43.24%. Nafan recommends buying BBRI with a long-term price target at IDR 3.840.

Editor: Hasbi Maulana