Reason for Stocks slumped Lorena

JAKARTA - The transportation sector arrival of new companies , namely PT Eka Sari Lorena Transport Tbk ( LRNA ) who just listed his name on the Indonesia Stock Exchange ( IDX ) . Unlike other companies , the stock went down in early trading , even at the close of trading should go down Rp120 .

As is known , LRNA IPO price of Rp900 per share , but the close of trading today must fell 13.3 percent to Rp120 or Rp780 per share .

Equity Analyst PT Indonesian Securities Rating ( Valuation ) Guntur Tri Hariyanto said LRNA stock price decline caused by the price offered at the beginning of the issue price in the secondary market is much more expensive .
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" The price offered by the underwriters in the initial public offering much higher than the price in the secondary market . Market seen the price offered is significantly more expensive , but still good prospects for this sector , "he told Okezone , Wednesday ( 04/16/2014 ) .

Furthermore , Guntur see that the drop in stock prices due to higher costs . However, other factors such as company fundamentals and the company's brand influences.

" The sector outlook is still good , as we look at other transportation companies like TAXI , meaning that the brand also influence the market valuation . However, the sector itself has a lot of risk , which takes a lot of capital , and the return of his usual course , " he explained .

source:http://news.okezone.com/