Blue Bird and Express Taxi ended the first trading session in the green zone. Blue bird shares (BIRD) rose 0.4 percent or 25 points to Rp 6,425 (US$ 0.5) per unit, while Express Transindo Utama shares (TAXI) rose 4 percent or 9 points to Rp 242 per share.

“There were speculations that drove the increase in both cases; speculations that lead to positive expectation, despite the violent protests,” NH Korindo Securities head of research Reza Priyambada told thejakartapost.com on Tuesday.

Some traders, he continued, speculated that the government would accommodate the protesters’ desperate aspirations by temporarily shutting down Uber and GrabCar operations, due to license issues.

Another speculation, a moderate one, predicted that both of the conventional taxi operators started to realize that protests would not be enough to save them from losing in the competition against ride-hailing apps, due to the popularity of app-based service among the public.

“Therefore, Blue Bird and Express taxi will possibly start to boost efficiency and marketing, which is good for their long-term business,” Reza explained.

Even if the government decided to pick a win-win solution for both sides, it surely would give conventional taxi companies a chance to regain the market as the ride-hailing apps would still be obliged to obey the law, he further said.

“Basically those speculations provided a reason for traders to bet on a future rebound. The protest opened a momentum for them to buy the shares,” Reza said.

The Jakarta Composite Index (JCI) closed 0.6 percent or 31.7 points lower, to 4,853.46. There were 149 stocks that rose, 148 others declined, while 230 stocks remained unchanged. (ags)

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