Analyst: Bukalapak Shares Can Drop To Level Rp100 If Negative Sentiment Continues

Illustration. (Photo: Doc. Antara)

JAKARTA - Analyst and Founder of Stocknow.id Hendra Wardana said technically that if negative sentiment continues and PT Bukalapak Tbk (BUKA) shares penetrate the psychological support level at the level of Rp107 per share, there is a possibility that the share price could fall further until it is close to Rp100 per share.

"This level is important because if it is penetrated, it will create greater selling pressure and worsen market sentiment," said Hendra, quoted by Antara in Jakarta, Wednesday, January 8.

In the long term, he said that if BUKA manages to make a good transition and shows strong growth in the digital service segment, then there is potential for BUKA shares to attract investors again.

However, he continued, in the short to medium term, investors will likely remain cautious while waiting for further evidence of the success of the new strategy.

Taking into account all these factors, Hendra said BUKA's shares will face high volatility in the near future.

"So, investors need to pay close attention to the company's performance development, as well as market responses to strategic changes made by BUKA management," said Hendra.

Hendra said to reach its profitable point, BUKA must continue to boost the performance of the top line, while at the same time being able to press costs of goods sold.

"Especially if, for example, if Bukalapak closes its marketplace physical product service. It is more focused on a digital marketplace like that, it can actually put more pressure on costs or operating expenses," said Hendra.

On this occasion, Hendra said that market participants were observed to react quite negatively to the announcement of BUKA which carried out business transformation by stopping the operation of physical product sales in the marketplace, and focusing on selling virtual products.

Data on the closing of trading on the Indonesia Stock Exchange (IDX) on Wednesday (08/01), BUKA shares were recorded to have closed down 5 points or 4.10 percent to IDR 117 per share.

Hendra explained that the trade data indicated investor concerns about the potential decline in revenue from the physical marketplace segment which was previously the backbone of Bukalapak.