Bukalapak (BUKA) stock is getting battered, what’s the reason?

Reporter: Akhmad Suryahadi | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. Shares of PT Bukalapak.com Tbk (OPEN) increasingly helpless. OPEN stock price is getting away from the current price initial public offering (IPO) at Rp 850 per share. On Monday (6/12) trading, the first-floor e-commerce stock on the Indonesia Stock Exchange (IDX) fell 6.94 percent to the level of 456 per share and was hit by auto rejection bottom (ARB). This means that BUKA’s shares have fallen 46.35% of the IPO price

If historically withdrawn, the OPEN stock has even been corrected since trading on November 22, 2021 in a row, aka uninterrupted.

In fact, OPEN’s financial condition began to improve. In the first nine months of 2021, BUKA was able to reduce its net loss to Rp 1.1 trillion. Whereas in the same period last year, BUKA suffered a loss of up to Rp 1.4 trillion. In terms of topline, revenue from the beginning of the year to the end of September 2021 was able to grow 42% yoy to Rp 1.3 trillion.

Kiwoom Sekuritas Indonesia analyst Sukarno Alatas said that although BUKA managed to reduce its losses, the current losses were still large. So, there is an assumption that the opportunity for OPEN to be able to make a profit in the future will be quite difficult.

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Moreover, the competition in the e-commerce industry is very tight, and BUKA has lost its reputation compared to other market place companies, such as Shoppe & Tokopedia.

Obviously, this can be seen from the number of users or the results of downloads (downloads) on the Playstore. The number of downloads for the Bukalapak application is still at 50 million users, while competitors such as Shopee and Tokopedia have reached 100 million downloads. “This means that Bukalapak is a little less desirable,” explained Sukarno to Kontan.co.id, Monday (12/6).

If viewed technically, an OPEN stock price trend that continues to decline before there is any sign or signal reversal trend, then the stock decline will continue. Sukarno pinned a recommendation wait & see for OPEN shares. To reduce the decline even further, Sukarno said that market participants could sell the shares they already held in BUKA.

Technically, technical analyst Henan Putihrai Sekuritas Mayang Anggita said, the OPEN stock is moving downtrend in a parallel channel pattern, with the current condition facing a test of the support at the lower channel at 456. The conservative target is the MA10 around 560.

However, if OPEN continues its weakening, then the next support is on the downward target from the falling wedge pattern around 400-396.

“As the position is around the support area, you can speculative buy with tight money management (maximum 20%), considering that OPEN is currently moving in a downtrend,” explained Mayang.

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