PT Sarana Menara Nusantara Tbk ("SMN" or "TOWR"), the parent company of Protelindo, KIN and iForte, is experiencing a significant increase in its stock ownership by local shareholders. As of February 2019, 13.6% of TOWR's free float of approximately 25.5 billion shares are owned by local investors representing a quadrupling of domestic ownership from 2.8% of TOWR'S free float shares in December 2017.
“This significant increase in share ownership by domestic investors is important as it diversifies our share ownership and reduces TOWR's exposure to foreign capital flows," stated Aming Santoso, President Director of TOWR "Our ADTV (Average Daily Trading Volume) has increased from Rp 1 billion in July 2018 to an average Rp 28.2 billion in the first two months of 2019. Increased local interest in our shares corresponds to the integral role we play in providing telecommunications infrastructure to support the growing usage of internet services and the increased demand for data in Indonesia."
Liquidity in TOWR's stock has improved significantly since mid 2018. “In early 2018 we experienced a reduction in liquidity as foreign fund outflow was greater than domestic demand. This situation has now reversed as demand for TOWR stock has more than offset capital outflows by foreign investors. In addition, trading of TOWR shares in the public stock exchange, Bursa Efek Indonesia ("BEI"), versus the block negotiated trade market has increased substantially from 37% of total trades in 2018 to 75% of total trades during the first two months of 2019,” said Adam Gifari, Vice President Director of TOWR. “We are pleased with the improvement of trading liquidity on the BEI as this has led to our inclusion in the BEI IDX80 index and is a pre requisite for any possible future inclusion in the BEI LQ45 index. Trading liquidity on the BEI is important as it supports a more robust market for our stock which in turn will more accurately reflect the true intrinsic value of TOWR's shares," concluded Adam.
SMN is a company listed in Indonesian Stock Exchange (“IDX”) under “TOWR” ticker with equity market capitalisation of approximately IDR 40 trillion. TOWR common stock has recently been included in the IDX80, a newly created index issued by IDX. The IDX80 stocks are those stocks that are considered the most liquid on the IDX and have a free float which will support active trading of the stock.