5 important things to know about the Right Issue in the capital markets

An investor or shareholder is the owner of the company, so investors can have a number of specific rights and one of them was the right Order of effects in advance in corporate actions right issue. Rights in these capital markets is obtained stock owners to buy new shares in the period and the price is already determined by the company.

1. The reason Companies do the Right Issue
Basically, the reason companies do the right issue is to raise funds for additional capital again. The company usually right issue is still in the stage of high growth and the fresh funds gathered be used for business expansion, paying the loan, or for working capital. If the right issue was carried out for the purpose of business expansion, the company's corporate actions can then be viewed positively.

Some companies do the right issue with the aim to increase the share of ownership of the shareholders or increase the number of shares outstanding in order to later become more liquid. In addition, the company could also right issue so that the market capitalization of the company become bigger. Right issue is actually almost similar to stocksplit, but does it matter if the right issue could add funds from investors at once can increase the market capitalization of the company.

2. Benefit Right Issue
Remember the purpose of a company doing the action of the right issue is to raise additional funds, then the benefits of the right issue for the company is able to use these funds as a source of new venture capital in addition to a loan from the bank. This can only happen when there is a weakening of the economy and makes the company's difficult borrowing funds from the bank.

Meanwhile, the benefits of the right issue for investors shareholders the company is the exercise price of the new shares right issue offered usually are given a discount because it is below the market price. The price difference of execution and the stock price in the market sometimes quite significantly and depends on how large of a company it wanted to encourage investors to participate in its corporate action.

3. The negative side Right Issue
Corporate actions right issue the company is generally not favored by investors because it will give negative impact on investors ' shareholdings. This happens because the right issue will cause the shares of issuers experiencing dilution. Stock dilution is a decrease in investor stock ownership composition resulting from the presence of the addition of the new shares.

The issuance of new shares it would be detrimental to the stock investors if this investor does not do anything because the percentage of ownership of its stake reduced.

4. Things to do before ordering Effects in advance
When the company decided to do the right issue, the number of shares the company will grow. If the number of shares of the company that does the right issue was increased and the funding that goes to the same company with the stock market, then the dilution does not occur until the action of the company for the right issue is not detrimental to shareholders.

5. Mechanism of Right Issue Issuers
The mechanism of implementation of the right issue a issuers typically begin with the announcement of the company's important things related to the following:

Plan The Use Of Funds
An announcement in this regard is very important to spread to stock investors so that investors know the purpose of right issue issuers. Shareholders need to be vigilant in the use of funds plan right issue is to pay off the debt. Usually the company was having difficulty in doing the payment of debts and can't borrow money from financial institutions. This condition could potentially cause stock prices to fall. On the contrary, if the company will utilise the funds results right issue for business expansion then step right issuers issue will most likely provide benefits to shareholders, either in the form of a dividend or the allotment of its stock price.

Top 10 main players in the Forex Industry

Most of you would already know that in the forex market there are a variety of perpetrators. Ranging from small retail traders aka play, then also the multi national corporations, financial institutions other than banks, speculators and a series of other principals.

Of the many players who jumped on the forex market, one of the principals that can be categorized under the major players that are capable of being market movers in the forex industry is a very large bank. Why is it called very large? Yes, if tracing the assets that dimikinya and diputarnya funds in the Forex market is really tremendous. Moreover, when compared with average retail traders.

With an estimated value of transactions (according to a survey in April 2013 by Triennial Central Bank worth 5 trillion u.s. dollars in one day, banks are expected to take a share of about 60 percent more than the total of the transaction. Imaginable is not how active and its massive banks that engage in forex transactions? Let's suppose calculate servings from each of the financial institutions in forex transactions daily.


1. Citi
The portion of the transaction of forex industry 12.9 percent = ± 645 billion us dollars
One of "the Big Four" older than 200 years survived occupied the first place as the financial institutions were actively trading foreign exchange. Despite being the largest portions, it does not mean the bank was able to avoid a crisis. In 2008 then, Citi still took a loss due to the financial crisis. At least 300 billion u.s. dollars of troubled asset value of his ever making Citi collapsed, until finally gets an injection of funds from the U.S. Government. But not long after that (dipertengahan) again managed to tread the ladder of success by going back to obtain savings fund society a number of 420 billion u.s. dollars.


2. JPMorgan Chase
Forex industry transactions share of 8.8 percent = CA. 440 billion u.s. dollars.
The Bank, according to many sources, is the sixth largest bank in the world (in the category of quantity of assets), as well as becoming the largest bank in the US. This makes sense because before formed as now, investment banks have been undergoing share merger. About a thousand more or less two hundreds of institutions have been fused over the career of the establishment became the largest bank in the US. Not without obstacles to become the bank of it, because JPMorgan Chase after ditelisik should also bear the risk of loss due to one of the tradernya doing the manipulation of transaction derivatives. Of those cases, estimated losses reached 9 billion u.s. dollars and has not added a penalty.


3. UBS
Forex industry transactions share of 8.8 percent = CA. 440 billion u.s. dollars.
Companies that confers a benefit on the country Switzerland, this inevitably suffered a storm of financial sector crisis in the U.S. in 2008 and suffered a loss of approximately 50 billion u.s. dollars. Even fines by the Supervisory Commission of financial institutions in the U.S. induced manipulation of transactions made traders who work in it worth 290 million dollars. Remember the bank still needed its existence ("too big to fail"), eventually through government intervention and the inclusion of Switzerland returned investors managed to reverse the losses into profits. Around 2014, the value of assets UBS back soaring to number 1.7 trillion u.s. dollars.



4. Deutsche Bank
The portion of the transaction of forex industry 7.9 percent = CA. 395 billion us dollars.
Banks that have already passed through two world wars, three time world financial depression and able to survive when the separation of Germany is also willing to occupy the position of the second largest bank in the world when it enters the new millennium. In 2009, Deutsche Bank even dominate the position of "foreign exchange dealer" by mastering more or less 21 percent market share. In line with the increasing competitive world of financial services and the development of the era, these achievements are now increasingly degenerated. The bank is rumored to even have to answer themselves suffered losses during the year 2015 yesterday as much as 6 billion euros. But however, the bank still is still operating in 70 countries.



5. Bofa Merrill Lynch
Forex industry transactions share of 6.4 percent = ± 320 billion u.s. dollars.
Previously, the institution was named Bank of America just before the end of 2009 the acquisition of a major financial institution, i.e., Merrill Lynch. The merger of the two giant institutions rumored not as smooth as expected. The drop in stock value more than seventy percent of any inevitable. The heyday of this investment bank recently evidenced by the achievement of extraordinary results in the financial industry with ever to obtain the acceptance of the second-largest in the world in 2011.

6. Barclays
The portion of the transaction of forex industry 5.7 percent = ± 285 billion us dollars
Big name investment banks from the United Kingdom is not free from difficult times. One of them is a result of not being able to return the loans from other banks that had to be repaid in one day as many as 3.2 billion u.s. dollars. The Bank became one of the market makers in the forex industry is apparently also forfeiture of financial supervisory authority in New York as much as 635 million u.s. dollars. Because Barclays caught using special algorithms in the electronic trading system that at its core obstruct or resist orders from users in order to potentially harm the bank.


7. Goldman Sachs
The portion of the transaction of forex industry 2.9 percent = CA. 235 billion u.s. dollars
Large investment bank in the U.S. that employs this person has assets 36,500 861 billion u.s. dollars, though it never separated from the controversy. Since established in 1869, the bank already often perform the action berbuntut is detrimental to his client. The nickname "the most hated bank worldwide" ever pinned on him.

Of them in 1929, the bank never make a system with the base of the pyramid scheme disguised as a mutual fund. The scheme was successfully made losses for its clients amounting to 300 million u.s. dollars. Later in the 1970s, Goldman Sachs was involved again in the manipulation of financing against an industry that is already bankrupt. Has not yet been passed, the bank makes a surprise return by selling products which ultimately deposit the buyer deposits this does not obtain the result because the value of the claims should be paid to the purchaser exceeds the value of the bank itself.

When it comes to the financial crisis in 2008, Goldman Sachs was forced to borrow central bank bailouts from the US amounted to 782 billion u.s. dollars for the sake of saving its existence.


8. HSBC
The portion of the transaction of forex industry 2.9 percent = ± 230 billion u.s. dollars.
HSBC built by the Scots who migrated to Hong Kong while still a colony of the United Kingdom. In its history, the bank managed to occupy a position as the fourth largest bank in the world seen from the quantity of assets that reached 2.67 billion u.s. dollars. This may be one of the great achievements of HSBC because in the event of a financial crisis that hit the U.S., the bank was thus able to survive and are able to meet the demand of the Government of the United Kingdom in order to increase capital adequacy. Proven shortly after the regulation is implemented, HSBC has been able to deposit additional funds worth 750 million pounds.



9. XTX
The portion of the transaction of forex industry 3.9 percent = ± 195 billion us dollars
XTX non banking institution is the only one that became a phenomenon in the world of Finance (transaction currency) in this year. A company stub which positioned itself as a "market maker" in the forex industry managed to shift the banks like Deutsche Bank for transactions in the spot market and become the fourth largest in the world by taking a share of about 7.5% to the spot market. Although still belongs to the new company, but its appeal managed to hook the top brass from many major world financial institutions to join in the managerial XTX.



10. Morgan Stanley
The portion of the transaction of forex industry 3.2 percent = ± 160 billion u.s. dollars.
Do you know how his horrendous events Google's IPO in 2004? Know the financial institution who also launched the process? Right, none other than Morgan Stanley No. However, this is not a seasoned bank escaped scandal. Like other banks in the U.S., the bank should be willing to accept the offer from the Government if it is to avoid bankruptcy due to the crisis of 2008. Eventually the Fund about 107.3 billion u.s. dollars (being the largest penghutang among banks at the time) for maintaining the sustainability of digelontorkan Morgan Stanley.

That's the 10 financial institutions are a major player in the forex industry. The steps they have always been the spotlight market, either when they were involved in the scandal as well as affected by the crisis, as can-can save a systemic impact. For that reason, analysis-analysis of the banks it was frequently quoted in news forex and heard by many market participants.

JCI Prone Profit Taking By Domestic Investors

JCI's performance is still pretty solid with the potential to approach the 5.300 level, on previous reviews I commented that JCI could reach the level of 5.335. The volume of foreign investors buying is still strong enough where the net buy year-to-date reached Rp 23 trillion. the entire sector is experiencing a rise in current sector where property, consumer goods and light industry became a very sector underpinned the rise in JCI in addition to the banking sector. But are wary because of the patur technical RSI already saturated buy above 78% there will be profit taking pressure at any time. If JCI had a weakened to as low as 5.150 and then persist around the 5.085. Currently support the JCI was around the level of 5.150-JCI ever rally from the lowest level beginning in 2014 when it is around 4.175 and strengthened to reach an all time high level of 5.500 in the year 2015 in April.

Economy Update
The Bank of England on Wednesday said that the central bank does not see any clear evidence of a sharp slowdown will occur in the economy of post-war United Kingdom decision Brexit, although about a third of the company's discussions with the central bank is planning to reduce recruitment and investment level.

The International Monetary Fund (IMF) in its World Economic Outlook released today again lowered the projected global economic growth be 3.1% this year, from an earlier projection in April amounted to 3.2%. The IMF also lowered growth projections in 2017 became 3.4% over the previous 3.5%.

Equity Comment
There is positive news that would menyasar the result of absorption of tax amnesty i.e. where the Government entering a real estate investment Fund (DIRE) as one of the instruments of absorbing funds repatriation tax forgiveness. In order for an instrument that is able to attract investors, the Government initiative of lowering the taxes related to the DIRE that assessed less competitive than other countries. In the direction concerning the facilities and land rights acquisition cost of the building (BPHTB) for issuing DIRE to a number of districts, it is our view will be fairly influential in the expansion of the property sector's performance in the stock market, deepening likuditas as well as the business plan that increases votes will benefit the property sector stocks.

issuers with the current price is above the highest price during the last one year, GGRM, MYOR, BBCA, JPFA, GJTL, KKGI, PPRO, BSIM, FASW.

Issuers with share prices managed to cut off the MA10; BSDE, TARA, DILD, ELSA, SIDO, BEKS, WINS.

Issuers that have growth in EPS (earning per share) best, GWSA, JPFA, KIJA, CPIN, FASW, WSKT, a BNGA, TCID.

The Market Awaits Interest Rate, Bargain Hunting Continued

IHSG continued to strengthen, with stocks supported by the mining sector, infrastructure and banking. JCI is still quite strong in the position of RSI 72%, meaning that selling pressure will still exist. On the other hand, the MA20 still are above the MA50 where this will reinforce JCI level positions 5.100 as his support. Looking ahead, JCI will try to grab the 5.200 level with the target mid-term at 5.335.

Economy Update
Gold slumped more than 1% on Monday as dwindling demand for safe haven assets following the failure of an attempted coup in Turkey, thus easing the risk events in the market sentiment.

The level of confidence among u.s. home builders dropped in July from the highest level for five months, showed that activity in the construction industry is still slow,

While in Indonesia, quite positive trade balance data where on last June, Indonesia recorded an export surplus of $ 900 million, and give the injection power for rupiah.


Equity Comment
This week investors will wait for the meeting of the determination of the interest rates of Bank Indonesia (BI). Refers to annual inflation, inflation historikal Indonesia recorded never low enough compared to projection, i.e. when the 2009, 2011-2012. When the pattern of decline in interest rates looks, where from year 2008 to year 2009 BI slowly began lowering interest rates, and when the years 2011-2012 BI again lowering interest rates below the level of 6%.

With the yearly inflation target of 4.5%-2.9%, and up to the current level of inflation is still pretty well with the expectations under the Government's target of about 4%-an then back open spaces decline in interest rates with the target annual BI below 6%. We saw his stable rupiah also make Bank Indonesia confident enough to back lowers the BI rate this week.

The potential decrease in the BI rate will download drive sectors which are quite sensitive to interest rates such as Various sectors namely industry and property, effect against sectors other than it would be pretty varied as infrasktur and consumer goods, optimism in the stock market keeps popping up, after the tax amnesty, macro fundamentals improving Indonesia also increase investor confidence, if the results of the financial statements of the company in the quarter II ciamik is not impossible then JCI will make a new record in the year.

Issuers with price's performance during the last three months is better than the performance of the JCI, among them: AGRO, DOID, BNII, INDY, PSAB, PPRO, SMBR, MEDC, CTRP, ELSA, ADRO, KINO, RALS.