Four stocks of State-Owned Enterprises (SOE) which have just been approved for rights issue, including stocks of PT Krakatau Steel Tbk (KRAS), PT Wijaya Karya (WIKA), PT PP Tbk (PTPP) and PT Jasa Marga Tbk (JSMR), are worthy of long-term investment.
“If investors think of long term and believe their performances (four SOE stocks) will continue to rise, then there is no harm to enter to those stocks,” Rexa Priyambada, Chief Research of NH Korindo Securities, said. He added that those four issuers stocks perhaps will decrease prior to rights offering but they potentially may strengthen again in line with performance development until year end.
“Perhaps it is too early to say that it is worthy for now, assuming that the current level has been overbought hence decreasing potential for optimal return achievement,” he said.
In this respect however, investors will also need to see the performance of each SOE that will boost their financial performance and stock price.(*)
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