By continuing ARB, will GOTO actions be suspended? This is the IDX word

JAKARTA, KOMPAS.com – PT GoTo Gojek Tokopedia Tbk (GOTO) shares continue to come under pressure. The tech issuer’s shares were recorded to have hit the automatic rejection bottom level (ARB) for 11 consecutive trading sessions.

During trading on Monday (12/12/2022), the price GOTO shares depressed 6.45 percent to a position of Rp 87 per share. That price was down by 74.26% from the initial public offering or IPO price of IDR 338 per share.

In response to the significant contraction, Gede Nyoman Yetna, director of corporate valuation at the Indonesia Stock Exchange (IDX), said his party continues to monitor GOTO shares. Even so, there is no possibility of suspending GOTO’s shares in the foreseeable future.

Read also: Regarding Telkom’s investment in GoTo, the CEO: not just capital gains

“As regards the suspension of trading associated with the volatility of transactions, we can state that the stock exchange always evaluates the trading of the securities of a listed company,” he told reporters on Monday (12/12/2022).

“Taking into account the condition of the company, the disclosure of the information presented and the general conditions of the market,” added Nyoman.

He also said that, regarding the drop in the price of GOTO shares in recent days, the exchange had asked the company for an explanation. The explanation was conveyed by the management of GOTO.

“In addition, the Exchange also asked the Company to conduct an incidental public exposure and it was conducted on December 8, 2022. The findings have also been posted on the Exchange’s website,” he said.

GOTO’s burden on the JCI began to ease

Nyoman explained that, as of Dec. 9, GOTO’s equity weighting relative to JCI was 2.75%. This has decreased from the position at the end of last November in the range of 4.89%.

Therefore, the impact of the weakening of GOTO on JCI is diminishing. This is in line with the company’s shrinking market capitalization.

“So when GOTO shares are down 7 percent in one day, then the JCI will only drop 0.175 percent,” he said.

As is well known, changes in the JCI are largely influenced by fluctuations in the share prices of large market capitalization companies. The IDX noted that as of Dec. 9, the 10 listed companies with the largest market capitalization were BBCA, BBRI, BMRI, BYAN, TLKM, ASII, TPIA, BBNI, UNVR and ICBP.

Read also: ARB in progress, to what extent will GOTO actions be corrected?

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