You can contact the author (Teguh Hidayat) by email, teguh.idx@gmail.com. The author live in Jakarta, Indonesia.

See my pictures in Instagram, @teguhidx.

Repo Cases in Indonesian Stocks

According to Investopedia, the repurchase agreement, or repo, is an agreement between two parties in which the first party borrows some funds from the second party with certain securities as collaterals, such as stocks, bonds, or government securities, with the promise that the first party would buy back the collaterals (thus the second party will get their money back). Usually the value of the loan is lower than the value of the collateral, for example A borrows Rp100,000,000 from B with 100,000 shares of X as collateral, at a price of Rp1,000 per share (so the loan value is Rp100 million), while the stock price of X in the market was higher at Rp1,500. In theory, if A later can not repay the debt, then B could just sell the shares of X that he holds in the market, so he will still make 50% profit.

Bumi Resources: Settlement for Debt Maturity Extension

This morning, Bumi Resources (BUMI) released an announcement on the IDX website (www.idx.co.id) entitled ‘Debt Exchange’. A friend who read the announcement was shocked: What debt? When BUMI did its right issue, last month, doesn’t it mean that all of their debt problems were settled??

The Visit of Saudi Arabian King, Aramco IPO, Oil Prices, and.. Coal?

As we know, King Salman of Saudi Arabia is currently visiting Indonesia for nine days (March 1 – 9, 2017). And if we look at the fact that it was the first visit of Saudi Arabian King in Indonesia in the last 47 years, then it must be a special visit, and even the King will stay here for no less than nine days straight. The question, what’s so special about the visit?

Prospect of Coal, Compared to Other Commodities

Some time ago a friend complained, ‘Dear Sir, I wonder why the shares of Elnusa (ELSA) keep falling? While on the other hand, I heard that the price of oil rose high’ (FYI, ELSA is a oil drilling service company). Well, if I received question like that, then my answer is usually normative, ‘Related to why the stock goes down, I do not know, but the fundamentals of ELSA are not so good in the first place, so the stock is not worth to buy. Also, the rise in oil prices may have no effect to the company’s financial performance, because even when the oil prices were high in 2011, still ELSA suffered losses in that year.’

'News Framing' in Stock Investing

In the field of journalism, ‘news framing’ is a method used by the media in conveying a news, information, or facts of a particular event, in order to influence the perception or impression from the public about the news or the people in it. In other words, news framing is a method of public opinion making, where the exact same piece of news, events, or someone’s statements can create several different perceptions from its readers, depending on how the media/journalist in delivering the words.

Domestic Investors vs International Fund Managers

If you open IDX website today (www.idx.co.id), you will find the news that at the end of 2016, domestic investors owned about 45.5% of all outstanding stocks in the market, while the other 54.5% were belonged to foreigners/international stockholders. Although the Indonesian Stock Exchange was still dominated by foreign investors, but the ownership of 45.5% of domestic investors was the highest in the last ten years or longer. Previously, between 2007 and 2015, the local investors owned about only 33 – 41% of all outstanding stocks in the market.

Why Do We Have To Invest in Stocks?

In one occasion, I once said that if you are still in doubt with the direction of Jakarta Composite Index (JCI), especially since the market is still quiet from the sentiment, then you can just wait outside aka hold the cash, so your portfolio will be safe from the possibility of a certain negative sentiment within the next two or three months that could drag down the JCI (thus your stock dropped), but on the other hand you might miss the opportunity to buy your stocks at good price if it turns out that the JCI immediately move up. At the end, nobody could predict the market, right? Especially in the short term like that.

Market Outlook for 2017

Until Monday, January 9, the trading volume on the Indonesia Stock Exchange (IDX) is fairly low with an average transaction value of only Rp5.25 trillion (US$ 400 million) per day since the beginning of the year, or far below the usual Rp6 - 7 trillion (about US$ 450 – 550 million) per day. This situation may raise the question: What’s happening? Actually the stock market is usually crowded with transaction at the beginning of the year, is not it? Then how about the outlook for Jakarta Composite Index (JCI) for the year 2017? Okay, let’s talk about it.