ACES Buyback Again, Stocks Find Pillar of Rebound

Elfa Adriana GintingEunike Yuliana

Febriana Dialusi HasiantaMaria Felicia

Micha ParamithaRaynova R

Saphira GraceSyukur Gulo

ACES Buyback Again, Stocks Find Pillar of Rebound

PT Ace Hardware Tbk (ACES) menyatakan telah melakukan pembelian kembali saham (buyback) sekitar Rp 2,49 miliar atau sekitar 3,351 juta saham. Menurut perseroan, transaksi buyback itu dilakukan pada tanggal 20-24 September 2013.

Previously the company had buyback approximately 2.29 million shares of with fund of Rp1.67 billion transaction. The transaction was conducted on 16-18 September 2013.

The Company plans to re-do the buyback with plans to spend around Rp34.30 billion or 20 per cent of the paid-up capital. In addition, the company also restrict buyback price at a price under $ 800 per share.

ACES Buyback Again, Stocks Find Pillar of Rebound

The buyback steps are carried out in accordance with Financial Services Authority regulations (FSA) No. 2/POJK.04/2013 repurchase shares issued by publicly listed companies in the market conditions fluctuate significantly.

For the stock price movements to trading this morning, ACES has gone up 10 points from the previous day's close of trading on Rp.730 position. But on a weekly basis this stock has dropped Rp10 per share since the beginning of this week.

http://vibiznews.com/2013/09/27/aces-buyback-3351-juta-saham-senilai-rp-249-miliar/

Aces

ANALYSIS

Foreign investors

withdraw their funds from Indonesia

Reduction of U.S. Government Bond

Purchases

Global political tensions linked

to Syria war

Indonesia Macroeconomic

Conditions

Background

Background

Stock index Fall

Foreign investors sell their shares

IHSG movement

Sale of shares by foreign investors led to a joint-stock index dropped drastically. Psychological condition causes poor investment and local investor panic that need systematic and immediate handling.

Solution

Stock index Fall

Financial Services Authority Regulation Number

2/POJK.04/2013 YEAR 2013 Date August 23, 2013 About Buy Back Shares Issued By Issuers or Public

Companies In The Market Conditions Fluctuate Significantly

Buyback

Definition:The repurchase of outstanding shares by a company in order to reduce the number of shares on the market. (Sumber : www. Investopedia.com)

A corporation's repurchase of stock or bonds it has issued. (Sumber : http://www.investorwords.com)

Purpose of Buyback

1. To reduce the number of shares on the market

2. To increase the value of shares (reducing supply)

3. To put unused cash to use;4. To increase control of the company.

Conclusion

1. Global Economy Factor has an strong impact to investment domestic

2. The fall of IHSG Jakarta also have an impact with the fall of ACES stock price

3. When ACES do the buyback, it seems there has been a recovery in stock prices. However, fluctuations in stock prices ACES also heavily influenced by the financial company fundamentals TSB.