Big caps make big gains on back of outstanding results

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Most of the highly capitalized companies, known as big caps or bluechips at the Indonesian Stock Exchange (IDX), ended the year with big bangs with most prices rising between 20 and 50 percent.

Shares in cigarette manufacturer HM Sampoerna (HMSP), for example, rose 53 percent, gas distributor Perusahaan Gas Negara (PGAS) 44 percent, cement maker Semen Gresik (SMGR) 38 percent, Telekomunikasi Indonesia (TLKM) 28 percent, Bank Central Asia (BBCA) 13 percent, Bank Mandiri (BMRI) 20 percent each and consumer giant PT Unilever Indonesia (UNVR) almost 10 percent as of Friday.

Analysts atributed the increases to outstanding financial results and their promising business outlook.

Meanwhile, shares in major lender Bank Rakyat Indonesia (BBRI) only rose by less than 3 percent and cigarette maker PT Gudang Garam (GGRM) dropped around 9 percent.

Shares in diversified conglomerate Astra International (ASII), the largest company by market capitalization, ended the year on a low note due to poor performances by its two subsidiaries PT United Tractors and PT Astra Agro Lestari.

ASII’s share price closed at Rp 7,600 (79 US cents) on Friday, a 0.66 percent rise on the day. On year to date basis and adjusted price following a stock split last June, ASII only inched up 2.7 percent on the close of last year’s trading.

“Astra still benefited from the surge in sales of cars in the country. However, its performance is dragged down by its subsidiaries, particularly United Tractors and Astra Agro Lestari,” MNC Securities’ Edwin Sebayang said.

Meanwhile, commodity based companies and related firms have been suffering from the declining prices, particularly coal and crude palm oil (CPO). United Tractors is the market leader in heavy equipment distributor, whose products are delivered mainly to coal miners. Astra Agro Lestari also suffered from declining CPO selling price, despite the increase of its sales volume.

“As the share price of the biggest market capitalization is flat, no wonder that the index only rose about 12 percent year to date,” Edwin said, adding that supporters of the index growth this year were cement, construction and property companies.

Astra International’s market capitalization reached Rp 307.7 trillion or about 7 percent of the total market capitalization, which reached Rp 4,127 trillion at the close of the trading on Friday.

Companies in the property sectors saw their shares rally this year on the thriving development of office buildings and increasing housing demand. The IDX property index rose 40.21 percent year to date.

Property business also affected shares in related industries such as ceramic maker PT Arwana Citramuli. Shares in Arwana (ARNA) rose 349 percent to Rp 1,660 on the year.

“Houses need ceramics for floor and even walls. Therefore, ARNA is growing along with property sector,” PT Investa Saran Mandiri analyst Kiswoyo Adi Joe said.

ARNA is among second liner stocks reporting outstanding performance on fundamental basis this year. Other best performers include food company PT Tiga Pilar Sejahtera Food (AISA), home appliances retailer PT Ace Hardware (ACES), document solution firm PT Astra Graphia (ASGR), developer PT Surya Semesta Internusa (SSIA), fashion retailer PT Mitra Adi Perkasa (MAPI) and PT BW Plantations (BWPT).

Kiswoyo said that AISA, ACES and MAPI benefited from the increasing middle class demanding for quality products. “In some cases, such as AISA, people are looking at their well packed rice distributed to supermarkets,” Kiswoyo said.

According to Kiswoyo, Astra Graphia — the exclusive dealer of Fuji Xerox — is leading in after-sales service and able to maintain its market shares at around 80 percent, while SSIA has diverse portfolio in industrial zone development, construction through its subsidiary PT Nusa Raya Cipta which is the second largest private construction firm, and in toll road.