REPUBLIKA.CO.ID, JAKARTA -- Participants in the capital market confirm the plan to establish an energy state-owned enterprise holding has received a positive impact due to the share price of the national gas company, PT Perusahaan Gas Negara (PGN), which has increased in recent weeks.
"The plan that PGN will be under Pertamina has had a good impact on stock prices of the gas company," the Secretary General of the Association of Indonesian Securities Broker Dealer, Yosefa Gunastuti, said in a release received by Antara here on Thursday.
According to Yosefa, markets always move from rumors, news, or corporate actions by issuers. Investors have responded positively about the energy state-owned holding establishment plan. This situation has made the share price of the gas company rise.
Yosefa, however, dismissed reports that the capital markets were worried about the holding plan. These sentiments, which affect the increase in the gas company's stock price, are due to the holding plan.
She added that investors see the holding company as making the gas company healthier.
By placing the company under Pertamina, the oil and gas state-owned company, PGN would be stronger and its investment would be larger.
"During this time, people consider PGN somewhat private. By being under Pertamina, PGN would be more open and healthier," Yosefa said.
PGN's stock prices showed a rising trend in the last two weeks. On July 10, 2016, for example, the closing price was Rp2.520 per share, while on July 26, 2016, the price reached Rp3.110 per share.
An economist at University of Indonesia, Berly Martawardaya, said the energy holding establishment has had a positive effect on PGN's stock price increase.
"A rise above 20 percent means that the market is responding positively," Berly said.
Further, according to Berly, the increase in the stock price indicates that the market is optimistic, believing the state-owned energy holding company would be profitable.
The energy company should be an unregulated monopoly or semi-monopoly, meaning that it has to be managed under one company, he added.
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