The Indonesia Stock Exchange (IDX) has excluded six Bakrie Group companies from the blue-chip index known as LQ-45, following a steep decline in their share value.
Investment holding PT Bakrie & Brothers, telecommunication company PT Bakrie Telecom, property developer PT Bakrieland Development, coal producer PT Bumi Resources, mining service firm PT Darma Henwa and energy company PT Energi Mega Persada are the companies expelled from the grouping starting Monday.
The companies will have the chance to get back on the list again after July 31, according to the IDX as reported by Antara last Friday.
LQ-45 is a group of 45 companies representing over 70 percent of total market capitalization in the stock market, and are the most traded on a daily basis. The companies are selected based on a 12-month period performance. Liquidity is a key indicator criteria for selection as it reflects a company’s overall performance, and their true value in the market. Once selected, a company’s stock is closely monitored and its performance is evaluated each quarter.
IDX stock trading division head Irmawati and product research and development division head Irwan Abdalloh signed the official new list of LQ-45 on Friday, Antara reported.
Since the October stock market rout, the Bakrie Group companies have suffered an average of more than 40 percent plunge in their share value. The IDX has also excluded shrimp producer PT Central Proteinaprima, industrial estate developer PT Kawasan Industri Jababeka, mass media company PT Media Nusantara Citra and engineering company PT Truba Alam Manunggal Engineering from the LQ-45 grouping.
The IDX has included coal producer PT Adaro Energy, timber company PT Barito Pacific, coal miner PT Bayan Resources, oil service company PT Elnusa, coal producer PT Indika Energy, cement maker PT Indocement Tunggal Prakasa, toll road operator PT Jasa Marga, pharmaceutical company PT Kalbe Farma, consumer goods company PT Unilever Indonesia and construction company PT Wijaya Karya on the LQ-45 new list. (hdt)