Bisnis.com, JAKARTA – The end of January is always a thrilling moment for investors and investment managers in the country. This is because this month, the Indonesia Stock Exchange (IDX) routinely conducts major evaluations of the LQ45 index.
The LQ45 index is selected stocks that are considered to have strong fundamentals and are most frequently traded. This stock group is also known as blue chip stocks.
The evaluation ahead of the year of the water tiger this time seems to be an important momentum, considering the performance of the LQ45 is in a less encouraging trend. In year-to-date (ytd) terms, for example, until the end of last week this index was slightly behind IDX30 with a yield ratio of 3.04 percent compared to 3.34 percent.
As an illustration, IDX30 consists of 30 shares, all of which are also LQ45 constituents. This means, there are 15 shares of LQ45 members who are not IDX30 members which are indicated to be “ballast.”
These stocks are said to have a high chance of being kicked out of LQ45. Moreover, the performance of the majority of non-IDX30 LQ45 member issuers also showed a negative trend.