Stock Prices of Bakrie, Hary Tanoe's Companies will Drop: Analyst
10 April 2014 11:14 WIB
TEMPO.CO, Jakarta – Analysts warn capital market investors to be careful when buying stocks of companies owned by politicians competing in the general election. Satria Utomo, head of research at Universal Broker Indonesia, said negative sentiments from a legislative defeat could affect stock prices.
"Shares of listed companies belonging to politicians who are expected to lose include those belonging to Hary Tanoesoedibjo and [Aburizal] Bakrie," Satria told Tempo yesterday. Hary Tanoe, Hanura party's vice president candidate, is the owner of several listed companies under the MNC group. Meanwhile, Aburizal Bakrie is the presidential candidate of Golkar Party who is also the owner of Bakrie Group.
Although politicians' campaign funds are separated form their companies' finances, Satria said negative sentiment will still have an impact on stock prices. Satrio said when Hary announced he was running for vice president, the share prices of Bhakti Investama (BHIT) and Media Nusantara Citra (MNCN) slumped.
Since Hanura announced Wiranto-Hary will be running for president and VP on July 2, 2013, MNCN prices had dropped 10.3 percent despite the two-percent annual profit increase. Meanwhile, MNC Land (KPIG) gained 15 percent since Hary's nomination, a relatively small increase considering KPIG profit grew 153 percent in 2013.
Bakrie is also experiencing declines in their stocks prices. One week ahead of the legislative elections, the stock price of Bumi Resources (BUMI) fell from Thursday's closing price of US$265 per share to Rp250 per share when it closed on Tuesday.
Responding to the prediction, MNC Group spokesman MNC Group Arya Sinulingga remains confident that believes the company's shares value will not be affected by voting results in the legislative elections. "Even if Hanura gets a low vote, [the number of] RCTI's audience will not decline," Arya said yesterday.
Similarly, Bakrie Group's spokesman Christian Fong said that Aburizal's political activities will not affect the company's stock price. "We have a separation in corporate management," he said.
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