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Hospital chains perform well on IDX, thanks to rising awareness about healthy living
Between March 23 and April 3, the share prices of healthcare providers recorded a significant increase.
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A medical worker checks a ventilator at the intensive care unit of Pertamina Jaya Hospital in Central Jakarta on Monday. (Antara/M. Risyal Hidayat)
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hares of hospital chains have performed well in the Indonesian Stock Exchange (IDX) in recent weeks as greater awareness about the importance of a healthy lifestyle is expected to further improve their business prospects, analysts said.
Between March 23 and April 3, the share prices of healthcare providers recorded a significant increase. PT Siloam International Hospitals Tbk’s share price, for example, gained 23.89 percent. Meanwhile, the share prices of other hospital chains such PT Medikaloka Hermina Tbk rose by 12.10 percent, PT Mitra Keluarga Karyasehat Tbk by 11.29 percent and PT Ciputra Development, which owns Ciputra Hospitals, by 8.65 percent.
The increase led to a sharp rise in the Jakarta Composite Index (IDX), which rallied 15.89 percent during the same period.
Artha Sekuritas Indonesia vice president Frederik Rasali said in Jakarta on Monday that the healthcare sector, which trades under the “trade and service sector” on the IDX, had always been an attractive sector for investments as the potential demand was quite high while the supply side was still lacking.
Based on the IDX's most recent weekly statistics, which summarizes data from March 30 to April 3, the trade and service sector gained 2.74 percent throughout the week, higher than the JCI’s gain of 1.71 percent.
Mirae Asset Sekuritas Indonesia, a brokerage firm, recommended the shares of a hospital company for this month’s purchase, as written in its “Monthly Strategy” report published on Monday, among seven other recommendations.
The brokerage firm listed PT Mitra Keluarga Karyasehat Tbk, which trades on the IDX with the code MIKA, as one of its top picks for April, noting that since its inception in August 2019, Mirae’s top picks had outperformed the JCI by 25.4 percent.
