Reaching the ARA level, the share price of GOTO has jumped to 34.86% due to entering the Morgan Stanley Capital International (MSCI) index.
Heaptalk, Jakarta — The shares price of PT GoTo Gojek Tokopedia Tbk (GOTO) rose significantly and touched Auto Rejection Upper (ARA) on Wednesday trading (05/31). This increase has attracted the attention of many investors, perceiving the surge in GOTO’s share price to Rp147 per share, approximately or jumping about 38 points (34.86%) at the last minute of trading.
Apart from the surge in share prices, the transaction value of GOTO shares was also tremendous throughout the day, reaching Rp6.44 trillion. This amount can contribute up to 24.08% of total transactions on the Indonesia Stock Exchange, or around Rp26.74 trillion.
In response to the shares price movements of GOTO, the Chief Executive for Supervision of Capital Markets, Derivative Finance and Carbon Exchange of Financial Services Authority (OJK), Inarno Djajadi, affirmed that his party always coordinates with the IDX regarding stock trading supervision. However, he observed no system errors during the trading period. According to Inarno, GOTO’s share price rise is due to entering the Morgan Stanley Capital International (MSCI) index, effective on June 1st, 2023.
GOTO’s entry into the MSCi index is part of rebalancing the index actions, with several assessment aspects, including market capitalization, stock liquidity, and free float of shares. Previously, Bloomberg Intelligence has projected an increase in GOTO’s capitalization and share price after being listed in the MSCI index. This step is expected to boost the company’s capital flow enhancement.
“GoTo was entered in the MSCI index, and of course, this matter influenced fund managers to rebalance portfolios several times ago, making GoTo’s inclusion in the portfolio have the potential to boost the company’s stock price,” Inarno said, during the press conference, cited in finance detik. (06/06)
Apart from the MSCI factor, GOTO shares have attracted foreign investors due to their low share prices. Besides, the company has also improved its performance, as reflected in the 1st quarter 2023 financial report. This matter has aroused optimism among investors that GOTO will be able to reach its positive adjusted EBITDA by the end of 2023 and expect to achieve a business profit.
Based on Tokopedia‘s financial dictionary, MSCI is a stock and bond index provider company. MSCI helps measure market performance in an area determined according to its calculation standards.
