Analysts say the weight of the technology stock index rose 10 percent with the entry of GoTo
REPUBLIKA.CO.ID, JAKARTA — PT GoTo Gojek Tokopedia Tbk (GOTO) will soon be listed on the Indonesia Stock Exchange (IDX). The entry of GOTO into the capital market is said to have the potential to raise the weight of the technology stock index.
BNI Sekuritas analyst Aurellia Setiabudi estimates the index weight technology stocks will increase to 10 percent with the inclusion of GOTO. With a market capitalization of around Rp 380 trillion, GOTO’s weight to the total market capitalization is equivalent to 5 percent.
“With a weighting of 5 percent in the technology sector, by the time when GOTO is listing, the technology sector will increase from 5 percent to 10 percent,” said Aurellia, Thursday (31/31).
According to Aurellia, the increase in the weight of the technology index will be a positive catalyst for the Indonesian capital market. Reflecting on developed countries such as the United States, South Korea, to China, investors are always looking for stocks with higher growth, namely in the technology sector.
On the other hand, GOTO will be an attraction because it has complete business segments ranging from transportation (Gojek), e-commerce (Tokopedia) to finance (Gopay). Aurellia saw that the three businesses promoted by GOTO were very promising in Indonesia.
“Gojek is the market leader and it is difficult for foreign players to compete. In addition, Indonesia is the largest economic internet market in ASEAN, which makes the market provide premium prices,” said Aurellia.
Apart from Gojek, Tokopedia is also a leader in the e-commerce segment. With a very good performance, Tokopedia is expected to be profitable in the near future. E-commerce itself is one of the segments that is in demand because it has the largest market size.
Furthermore, Gopay is also expected to support GOTO’s growth. Until now, the number of people who do not have access to finance is still very large. The presence of GOTO financial will open access to finance for the public.
“All that GOTO has creates a uniqueness that is difficult for other players to replicate or compete with. So I see that GOTO is indeed an attraction in the technology sector, therefore it will give a positive sentiment to the JCI,” said Aurellia.
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