GOTO Shares Dropped 21% in 3 Days, MSCI Party Over?

mzaCNBC Indonesia


Wednesday, 07/06/2023 11:14 WIB

Photo: A number of Gojek drivers prepare to ride electric motorbikes after the inauguration of the G20 electric motorbike shelter in the ITDC Nusa Dua tourism area, Bali, Wednesday (19/10/2022). A total of 50 electric motorbikes with the Gesits and Gogoro brands will be provided by Electrum for the Gojek online motorcycle taxi (ojol) fleet at the G20 Summit in Indonesia, which will take place on November 15-16 2022 in Nusa Dua, Bali. (CNBC Indonesia/ Andrean Kristianto)

Jakarta, CNBC Indonesia – Shares of PT GoTo Gojek Tokopedia (GOTO) fell 2.52%, to IDR 116 per share on Wednesday trading (7/6/2023). This decline marked that GOTO shares had been corrected for three consecutive days. In fact, last week (31/5) GOTO shares had strengthened by 34.8%, to IDR 147 per share.

This increase was allegedly due to the simultaneous entry of GOTO shares into the rebalancing MSCI index (Morgan Stanley Capital International). MSCI is a stock and bond index from the investment research institute Morgan Stanley as one of the investors’ references. This index is widely used as a reference for world investment managers as a basis for selecting assets.

The inclusion of GOTO shares in the MSCI index can push the price up, because of index mutual funds and ETFs (Exchange Traded Fund) those who follow the movement of the MSCI index must of course follow the constituent changes made.

This was allegedly the cause of the massive purchase of GOTO shares. However, the day after GOTO’s stock shot up (Top Auto Reject/ARA), followed by a maximum decrease (Auto Reject Down/ARB), -14,97%. GOTO shares were one of the first companies to experience a change in the ARB rule of -15%, from -7% previously.

Since that day, GOTO’s share price has continued to fall to this day. GOTO shares have experienced a total decline of three consecutive days of 21%.

The decline in GOTO shares occurred not without reason. This is because the tendency for stock prices to rise rapidly in a short time will attract investors to realize their profits.

Apart from that, it turns out that a number of big investors sold GOTO shares in early June, such as Charles Schwab Corp, Credit Agricole Group, and Invesco Ltd.

It was recorded that on a daily basis, until June 2, 2023, Charles Schwab Corp’s share ownership of GOTO had decreased by 2.81 million shares to 976.84 million shares. In the same period, Credit Agricole Group, a banking group from France, reduced their shareholding by 335,630 shares to 606.06 million shares.

Another investor is Invesco, Ltd. which sold 1.06 million GOTO shares to 191.34 million shares. For information, the period of selling these shares was recorded on the holiday with the celebration of Vesak Day, so this selling action was reflected in the decline in GOTO’s share price which reached ARB on the first day of stock trading starting again (5/6).

Watch the video below:

GOTO Stocks Soaring, Investors Must Be Alert of This


2023-06-07 04:14:02

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