JAKARTA. The Indonesia Stock Exchange (IDX) has lifted the suspension of PT Indonesia Prima Property Tbk (OMRE) shares in the first trading session Monday (12/12). Even though it continued to strengthen, OMRE’s share price turned down at the market close, Tuesday (13/12).
In fact, after the suspension lock was opened, OMRE’s share price yesterday jumped 6.73% to Rp 1,665 per share. On Tuesday (13/12), OMRE shares once again shot up to the Rp. 1,830 area, before finally closing down 0.30% to a level of Rp. 1,660 per share.
Previously, the IDX rewarded OMRE shares with a temporary suspension of trading (suspension), due to a significant increase in cumulative prices. The suspension will take place from the first trading session on December 2, 2022.
Research Analyst Infovesta Kapital Advisori Arjun Ajwani reminded investors to be wary of the movement of shares that have just been suspended. Moreover, the suspension imposed due to a surge in stock prices that moved unnaturally or was included in the Unusual Market Activity (UMA) category.
Arjun sees that the significant increase in OMRE’s share price since the end of November has not been accompanied by positive catalysts, both fundamentally and technically. Thus, the OMRE share price has the opportunity to move volatile, and has the potential to decline again.
“Unless there is positive sentiment that drives the share price further up. In the short term, it will still be volatile with a low level of liquidity,” explained Arjun when contacted by Kontan.co.id, Tuesday (13/12).
Just so you know, since June 2022, OMRE shares have been more stuck at the price level of IDR 500. However, there was a significant jump in November to break the price level of Rp 1,000 per share.
The IDX also suspended OMRE shares on November 14 2022, then reopened the following day. On November 30, OMRE shares were able to shoot up 25%, then rose another 24.80% on December 1 to a price of IDR 1,560.
Henan Putihrai Sekuritas analyst Jono Syafei estimates that the recent spike in share prices could be a market response to the corporate action held by OMRE. The action is in the form of a rights issue.
As is known, last October OMRE announced that it would hold a Capital Increase with Pre-emptive Rights (PMHMETD). The rights issue is carried out by issuing a maximum of 1.2 billion new Series B shares.
The price for the rights issue is set at Rp 500 per share. As a result, from this rights issue, OMRE is targeting to raise up to Rp 600.27 billion in funds.
The plan to use the proceeds from the rights issue is intended to settle OMRE’s debt to PT Manning Development of Rp 577.58 billion. The rest will be used as working capital.
According to Arjun, the sentiment from the rights issue should not have boosted share prices to a very significant level. If you have strong fundamentals, the share price of the issuer holding the rights issue will rebound in the short term after a temporary correction.
“Investors need to be vigilant. After a certain amount of time, this stock could drop to the level before the price increase at the beginning of November,” said Arjun.
Considering this, Arjun also suggested selling OMRE shares. Whereas. Jono doesn’t have a recommendation for OMRE yet. He only reminded market players to be more careful if they want to collect volatile stocks like those that have been hit by this suspension.
MNC Sekuritas Technical Analyst Herditya Wicaksana added that historically, OMRE stock movements tended to be sideways with volatile volumes.
On another note, be aware of the stochastic which is prone to deadcross. So Herditya advised market players to sell on strength first in OMRE shares.
Source : Kontan