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00:00Indonesian Effects Association, together with the Indonesian Effects Exchange, has established the latest list of the Pevindo I-Grid and IEDX Pevindo Prime Bank constituents for the July to December 2024 period.
00:24In the rebalancing of the 2nd semester period this year, PT AKR Korporindo TBK and PT Timah TBK are out of the Pevindo I-Grid index constituents.
00:38PT Pemeringkat Efek Indonesia, together with the Indonesian Effects Exchange, last week re-established the Pevindo I-Grid and IEDX Pevindo Prime Bank constituents for the July to December 2024 period.
00:52Rebalancing is carried out so that the two Pevindo indexes based on the rank are the reference in investing in the stock market and continue to record outperform.
01:03In the rebalancing of the 2nd semester of 2024, Pevindo and Bursa Efek Indonesia have agreed on two constituents that came out of the previous period in the Pevindo I-Grid index, namely PT AKR Korporindo TBK and PT Timah TBK.
01:16The two emitters are replaced by PT Bank Syariah Indonesia TBK and PT Merdeka Batere Materials TBK.
01:23While for the IEDX Pevindo Prime Bank index, there is no replacement constituent for the 2nd semester period of 2024.
01:33The Pevindo I-Grid index itself is an index consisting of 30 stock emitters who have received an investment grade from Pevindo.
01:39This index has been a reference since it was launched on December 21, 2017.
01:45While the IEDX Pevindo Prime Bank index is an index consisting of 10 stock emitters who have received an investment grade from Pevindo.
01:53This index was launched on October 4, 2023.
01:58Various sources of IEDX channel
02:02Yes, Pemirsa, to discuss our next interesting topic, the rebalancing of the Pevindo I-Grid index constituent and also the IEDX Pevindo Prime Bank is already present with me in the IEDX channel studio.
02:12He is Mr. Suhin Darto, Head of the PT Research Economy Division of Pevindo Indonesia.
02:17Good morning, Mr. Darto.
02:18Good morning, Mr. Suhin.
02:19Greetings.
02:20Greetings.
02:21Thank you very much for your presence.
02:22You have mentioned some data.
02:24Maybe in the beginning, it can also be told to Pemirsa.
02:27What do you mean by the IEDX Pevindo I-Grid and also the IEDX Pevindo Prime Bank that we have discussed earlier?
02:35Thank you, Mr. Suhin.
02:36For the IEDX Pevindo I-Grid itself, or if we describe it longer, it is called the IEDX Pevindo Investment Grade.
02:44According to its name, this index is a stock price index consisting of 30 companies that have been listed on the Indonesian Stock Exchange.
02:53They also get an investment grade from Pevindo.
02:58So, besides they have to be listed on the stock exchange, they also have to have an investment grade from Pevindo.
03:05What is an investment grade?
03:07Actually, an investment grade has a range from AAA or the highest level of credit to BBB- for the investment grade itself.
03:19This index is the first index in the Indonesian stock exchange that accommodates the Pevindo level as one of the factors to select a constituency or select a company that can be listed as one of the 30 members of this index.
03:34This indicates that they have a good fundamental from the Pevindo I-Grid or Pevindo Investment Grade itself.
03:44Then, for the IEDX Pevindo Prime Bank, this index is almost the same as the Pevindo I-Grid index.
03:54It also has one of the factors that must be included is the investment grade level from Pevindo itself, but it is more specific to the banking sector.
04:02Previously, the constituency of 30 members of the IEDX Pevindo Prime Bank itself consists of 10 members of the banking sector that have been listed on the stock exchange and get an investment grade from Pevindo.
04:15More or less, it is for each of the Pevindo I-Grid and also the IEDX Pevindo Prime Bank itself.
04:23So, there are 30 members of the Pevindo I-Grid and 10 members of the Pevindo Prime Bank that have been listed on the stock exchange and get an investment grade from Pevindo.
04:33What is the reason for the release of this second index from Pevindo?
04:40From Pevindo itself, as we know, Pevindo or its extension is PT Pemeringkat Efek Indonesia.
04:46It is one of the first listed institutions in Indonesia and we are currently the largest.
04:55We see that with many clients or companies that we have listed, we actually have information related to the fundamental of the company.
05:05Because in Pemeringkat, we don't just see the financial aspect of the company, but we also see the business prospects, etc.
05:13We realize that the information is valuable, so we decided to use that information to assess the energy of a company that we use to compose from the index itself.
05:30The fundamental analysis itself is based on the level itself, which also reflects the fundamentals of a good company if it is included in the investment grade itself.
05:40And for this Pevindo I-Grid itself, it is the first stock index that was listed in the Pevindo rank.
05:51So, that's the first one and maybe one of the two, in addition to the IEDX Pevindo Prime Bank itself.
05:59So, this index, because Pevindo itself has information related to those companies,
06:06in the end, we use that information to search for good companies to make an index.
06:13And this is proven from its excellent performance.
06:16Like if we flashback a little to 2023, year to date, the performance of the Pevindo I-Grid index and also the IEDX Pevindo Prime Bank
06:25became the first and second best performance index in the Indonesian stock market compared to all the indexes listed in the stock market itself.
06:33With each of the returns, it is about 15% between the two indexes.
06:41This is interesting, Mr. Mati.
06:42Of course, for capital market investors, these two indexes are related.
06:46So, what is the added value of these two indexes?
06:52So, for capital market investors, what is the added value of these two indexes?
06:59As I mentioned earlier, it is different from the other indexes.
07:04In the IEDX Pevindo Prime Bank index and also the Pevindo I-Grid index,
07:09these two indexes are the two indexes that so far accommodate the Pevindo rank.
07:16While in the other index, there is no Pevindo rank.
07:18And this rank itself is an important information to see the fundamentals of a company and its prospects in the future.
07:27And why we use this rank as a factor to select the constituents in it.
07:35First, we see the meeting point between the stock analysis and the ranking analysis in us.
07:43And secondly, the meeting point is in the cash.
07:47If the credit rating analyst sees how the ability of a company to produce cash to fulfill its obligations.
07:55While for the stock analysis, they usually see how a company has prospects for the future.
08:01Actually, there is a red thread in the cash itself.
08:04And with that, we try to connect it to make the methodology relevant to look for constituents or emitters whose performance is the best.
08:14And it turns out, Alhamdulillah, it is proven from the performance throughout the base date period as well.
08:21And also in 2023, it became the best index, the first and second in the stock market.
08:27Wow, that's it.
08:28If we look at the red thread, it's the cash.
08:31It means the ability of a company to maintain its energy.
08:35And if we look at when this index was released, and how it has developed until now.
08:43As you said at the beginning, the performance has been proven.
08:47With the second position, if I'm not mistaken.
08:50First and second.
08:51First and second even.
08:52What is this like? Since when?
08:54For the Pevindo I-Grade itself, this is the first time it was released using Pevindo rank.
09:01It was released in 2017, on December 21, 2017.
09:05And while for this Pevindo Prime Bank itself, it was released just last year, at the beginning of the fourth quarter, on October 4th.
09:14So indeed, one of the latest Pevindo index is IDX Pevindo Prime Bank.
09:20And as far as we can see, the acceptance from the market itself is also good.
09:26Especially for these two indexes, it has been proven that there are quite a lot of MIMEs that use this index as their underlying product.
09:34Both from Reksadana and ETF, and the management funds continue to grow.
09:39So the acceptance from the market is also good since the release.
09:43So it can also be a reference for investors and investment managers.
09:47Related to the Pevindo I-Grade index and also the IDX Pevindo Prime Bank.
09:53We will discuss later what it is like, how many MIMEs are included, and then the development of the MIMEs in it.
09:59But we will discuss later in the next segment.
10:01Mr. Mirsa, we will take a break.
10:13Thank you Mr. Mirsa for joining us in Market Review.
10:23And Mr. Mirsa, we will bring you the data related to the criteria for selecting the Pevindo I-Grade constituent index.
10:30What are the criteria? You can see the details on your television screen.
10:35First, there is a company rank, legal aspect, market capitalization, and liquidity aspect.
10:45These are the criteria for selecting the constituent that is included in the Pevindo I-Grade index.
10:52Next, what about the IDX Pevindo Prime Bank index?
10:58As you can see, there are more criteria.
11:01There is a ranking factor, total asset, liquidity, market capitalization, valuation, and legal aspect.
11:10These are the criteria for selecting the Pevindo I-Grade index.
11:16Next, we can see that there are several MIMEs that are included in the Pevindo I-Grade index.
11:22What are the MIMEs? As you can see, there are several MIMEs that are included in the Pevindo I-Grade index.
11:28First, there is a company rank, legal aspect, market capitalization, and liquidity aspect.
11:37Next, there are several MIMEs that are included in the Pevindo I-Grade index.
11:41There are several MIMEs that are included in the Pevindo I-Grade index.
11:50Next, we will continue the discussion with Mr. Suhin Darto, Head of the Research Economy and Assistance Division,
11:56Vice President of the Pevindo I-Grade Index.
11:59Mr. Darto, it is interesting if we look at the data that has been provided.
12:05This is in accordance with the previous question.
12:08How many MIMEs are included in these two indexes?
12:12What are the criteria? And how strict?
12:16For the MIMEs in July to December, we have just finished the rebalancing.
12:22And this has been done per July.
12:26There are 30 MIMEs for the Pevindo I-Grade index.
12:32There are several MIMEs.
12:34There are several MIMEs.
13:02There are several MIMEs.
13:14There are two new MIMEs.
13:19There are two new MIMEs.
13:29There are two new MIMEs replacing the old MIMEs, namely PT Acra and PT Timah.
13:36The two MIMEs replacing the old MIMEs are because of the methodology.
13:44We are looking for the best 30 MIMEs.
13:46So, the top 30 MIMEs are included in the new MIMEs.
13:51If we look at the composition, Pevindo I-Grade is dominated by the banking sector.
14:0026.67% of the company is in the banking sector.
14:0510% of the company is in the holding sector.
14:1110% of the company is in the mining sector.
14:156.67% of the company is in the construction sector, property, and telecommunications sector.
14:246.67% of the company is in the construction sector, property, and telecommunications sector.
14:31The top 30 MIMEs are included in the new MIMEs.
14:4223% of the company is in the holding sector.
14:4720% of the company is in the mining sector.
14:52The new MIMEs are composed of MIMEs with good performance.
14:58The new MIMEs are composed of MIMEs with good performance.
15:06It's good for the investment.
15:11It's good for the investment.
15:16There are 10 banks in the Pevindo Prime Bank Index.
15:22There are 10 banks in the Pevindo Prime Bank Index.
15:25The index is designed to catch market movers.
15:30Because, as we know, from the banking sector itself, in Indonesia, it is the market mover of the Indonesian stock market.
15:38From there, we often take the top 10 to be this index.
15:42And the four big four constituents, there are BCA, BNI, BRI, and Bank Mandiri.
15:49Meanwhile, the others are Bank BTN, Bank Danamon, BPD Jabar Banten, Bank CIMB Niaga, Bank Syariah Indonesia, and Bank PAN Indonesia.
15:58From those 10 constituents, there are only 2 that are in the double A rank, while the other 8 are in the triple A rank.
16:06So, indeed, the banks that are included are also banks that perform very well in their ranks.
16:13More or less, that's it.
16:15Yes, what's interesting, if I want to ask, after the companies were detected and then included in these two indexes, how did the development go?
16:23What are the positive sentiments that they can feel after being included in this best of the best index?
16:30Yes, that's right. For Pevindo I-Grade itself, if we look at the historical performance, since the base date or since the release of this index until now,
16:41it has given a return of around 126.51%.
16:47The base date is on December 28, 2012. So, around 12 years ago, it has given a return of around 126.51%.
16:57Indeed, if we compare it with its peers, like the indexes that are of the same type, because Pevindo I-Grade is the broad-based one,
17:06it's not a specific sector like Prime Bank, which is just a comparison.
17:10If we compare this Pevindo I-Grade with the broad-based sector, like LQ45, then IHSG itself, then the other broad-based one, maybe IDX30,
17:19the performance is far superior to those three indexes.
17:23So, if we compare it, for example, based on the base date, or if we count since December 28, 2012 until the end of June,
17:31for IHSG itself, the return is 63.63%, for LQ45, it's 20.77%, while for IDX30, it's only 18.99%.
17:42If we compare it with I-Grade, as I said earlier, I-Grade itself has a return of 126.51%.
17:48So, in terms of performance, it's really good.
17:52That's why many investment managers are interested in making this index as their underlying product,
17:57to be used as a mutual fund, ETF, and so on.
18:00Then, for Prime Bank itself, even though it was just launched yesterday, the performance is no less good.
18:06If we compare it peer-to-peer with a similar index, for example, in IDX, we know that there is a financial sector index,
18:14which is a highlight for the financial sector in general in the stock market, and maybe another similar one is from Infobank.
18:21If we compare it peer-to-peer with Prime Bank, maybe the peer-to-peer is on January 3, 2017.
18:28The performance is also far superior to the other two indexes.
18:31If we look at the financial sector index itself, the return is 73.1%, then Infobank is 93.7%,
18:42while for Prime Bank itself, it's 125.14%.
18:46So, in terms of performance, it's very outperformed compared to the other indexes.
18:52Okay, Arthur, this is the last question.
18:54How is the rebalancing process? How many times or how long does it take to do rebalancing?
19:02Then, what is the basis or methodology to do this rebalancing?
19:06Yes, okay.
19:07Regarding rebalancing, coincidentally, last June, we just finished rebalancing and it was held on July 1 until the end of December.
19:15We usually do the rebalancing process every 6 months.
19:19So, for these two indexes, coincidentally, the period is the same, which is every June and December.
19:25So, it will happen at the beginning of the next month.
19:29For example, in our June rebalancing, it was held on July 1.
19:32Or in our December rebalancing, it usually happens on January 1.
19:37So, for the periodization of the rebalancing or the review of the major, it's every 6 months.
19:43Then, for the methodology itself, as mentioned in the graphics,
19:49for Pevindo I-Grade, we evaluate based on 4 criteria.
19:53First, the company rank itself, which is the company that is ranked by Pevindo.
19:57So, it must have a Pevindo rank to be included as a constituent.
20:00Then, we consider the legal aspect.
20:03Does the company have a UMA or suspension record?
20:06We deliberately include this factor so that the companies that are included as a constituent are not fried.
20:14So, the companies that are traded are normal in the stock market.
20:17Then, the third one is the market capitalization.
20:20Because we want to catch the market movers from IHSG itself.
20:25Because usually what is sought by the market is the market movers.
20:29Then, the last one is the liquidity aspect.
20:32We consider 5 things.
20:33First, the number of active trading days.
20:35Then, the average volume of transactions per day.
20:38Then, the average value of transactions per day.
20:40The average frequency of trading per day.
20:42And also, the free flow of the traded shares.
20:45That's for Pevindo I-Grade.
20:47For Pevindo Prime Bank, the criteria is more or less the same.
20:50Using those 4 criteria.
20:52But we add 2 more things.
20:54Because Pevindo Prime Bank is a specific stock in the banking sector.
21:00So, to compare the same company in the same sector,
21:05we can use 2 additional criteria.
21:08The first one is the total asset factor.
21:10Where the total asset factor itself reflects their competitive capacity and business capacity.
21:15So, we want to catch those who have good competitive capacity and business capacity in Indonesia.
21:20Then, the second one is different from the valuation factor.
21:24Because we use PI ratio and PB ratio.
21:28To catch the companies that are still undervalued.
21:31And in the future, they still have good growth prospects.
21:35That's right.
21:36That's an amazing explanation.
21:37It's related to the deep lensing constituent.
21:39From the Pevindo I-Grade index and also the Pevindo Prime Bank index.
21:43Thank you so much for your time.
21:46Thank you so much for your time and setting.
21:50Alright, Mr. Mirsa.
21:51I've been with you for an hour in Market Review.
21:53Keep sharing your information on IDX channel.
21:56Your trustworthy and comprehensive investment reference.
21:59Don't forget to watch First Session Closing.
22:02It will air at 11.30 p.m. WEST INDONESIA.
22:04Because the future must move forward.
22:06I'm Investor Saham.
22:08I'm Prasetyo Ibowo.
22:09I bid you farewell.
22:10Thank you and see you again.
22:26I'm Investor Saham.
22:27Thank you and see you again.