Taken from the Bloomberg Business Week April edition, we can see that the IHSG is having the chance in getting better in the BEI for the following months.
From the INILAH.COM, Jakarta the movement of IHSG for the closing for Thursday (25/3/2010) the index is quite high with increase of 24, 3 point (0.88%) to the level 2.799,15
PT Bank Negara Indonesia Announces Earnings Results for the First Nine Months. PT Bank Negara Indonesia reported a net profit of IDR 2.95 trillion in the first nine months of 2010, up 59.33% from the same period last year
Rabu, 24 November 2010
Analysis of Beta
Beta is the sensitivity of the stock return to the return of the market portfolio. In another words, Beta is used to measure the change in stock return when there is a change in the market return. And in this company the Beta was calculated as 0.793645942. This beta means that the market will influence the stock return by 79.36%. We can take further explanation that every time the market return is increased or decreased for $1, then the stock return will have an increase or decrease in price for $ 0.7936 as a response to the beta relationship it holds.
There are some cases that we can see in the table of stock price showing that stock return has e opposite movement from the market return. When the market is increasing because special events that occurred that day, the stock return was increasing with the value greater than 1.5 and vice-versa.
So this company is quite the right place for risk seeker to invest their money in, since it could be classified as an aggressive stock company (Beta more than 1.0- average) but for those that does not enjoy risk or want to play it safe, it would be best not to put all of your money in this company, Although, a good investor would invest not only in one place but in several places. So in other words, do not put all your money in one basket since you might lose them and be left with nothing.
There are some cases that we can see in the table of stock price showing that stock return has e opposite movement from the market return. When the market is increasing because special events that occurred that day, the stock return was increasing with the value greater than 1.5 and vice-versa.
So this company is quite the right place for risk seeker to invest their money in, since it could be classified as an aggressive stock company (Beta more than 1.0- average) but for those that does not enjoy risk or want to play it safe, it would be best not to put all of your money in this company, Although, a good investor would invest not only in one place but in several places. So in other words, do not put all your money in one basket since you might lose them and be left with nothing.
Analysis of Average and Standard Deviation
An average is a single value that is meant to typify a list of values. If all the numbers in the list are the same, then this number should be used. If the numbers are not the same, an easy way to get a representative value from a list is to randomly pick any number from the list. (Taken from www.wikipedia.com ) We can see progress of fluctuation in stock price of BNI within a year from January 2nd, 2010 up to October 29th, 2010 by seeing the average stock return with 0.00353 which means that at least the investor whom holds the stock of this company will gain 0.00353 or 0,353% profit per day. Average in return investment of 0,003102 can also mean that the change of price from one day to the next day is only in a light change.
Even though that there are some special days where the change is happening in a very high portion or very low portion, but likely it happened because of special occasion by an event related to financial or economic life which will be explained later on the IHSG situations within a year.
In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility. The standard deviation or return investment for the Bank Negara Indonesia, Tbk. as 0.020656 which means that the differences between the expected return and the actual return is 2% so that the investors whom are about to buy the stock of this company can predict at high percentage of correctness of the upcoming price in the coming days.
For the market return, average value of 0.001787 means that the investor whom is hoping to gain some profits from the market return will at least receive 0.1787% profit from the market price. Some major increase or decrease happened as the responses to the situational condition that was happening in the BEJ at the year of 2010. We can see the situation in the BEJ later on the IHSG situations within a year.
For the standard deviation of market return, the calculation result for 0.012901 or 1.2901%. So it means that the difference between the investors’ expected return and actual return from the market (IHSG) is quite small since it’s around than 1% but we have to note down that some fluctuations, that happened to make a highest price in the IHSG or the lowest price, were due to the occasional situations that happen within a year.
Some special events are influencing the fluctuation in the market and also stock price of the company. The upcoming discussion will be talking about what has been happening in the IHSG along the year of 2010.
Even though that there are some special days where the change is happening in a very high portion or very low portion, but likely it happened because of special occasion by an event related to financial or economic life which will be explained later on the IHSG situations within a year.
In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility. The standard deviation or return investment for the Bank Negara Indonesia, Tbk. as 0.020656 which means that the differences between the expected return and the actual return is 2% so that the investors whom are about to buy the stock of this company can predict at high percentage of correctness of the upcoming price in the coming days.
For the market return, average value of 0.001787 means that the investor whom is hoping to gain some profits from the market return will at least receive 0.1787% profit from the market price. Some major increase or decrease happened as the responses to the situational condition that was happening in the BEJ at the year of 2010. We can see the situation in the BEJ later on the IHSG situations within a year.
For the standard deviation of market return, the calculation result for 0.012901 or 1.2901%. So it means that the difference between the investors’ expected return and actual return from the market (IHSG) is quite small since it’s around than 1% but we have to note down that some fluctuations, that happened to make a highest price in the IHSG or the lowest price, were due to the occasional situations that happen within a year.
Some special events are influencing the fluctuation in the market and also stock price of the company. The upcoming discussion will be talking about what has been happening in the IHSG along the year of 2010.
Company Profile
Initially referred to by its unabbreviated name of Bank Negara Indonesia when it was established in 1946, BNI is the first bank formed and owned by the Indonesian Government.
Historical records indicate that on the eve of the 30th of October 1946, or merely a few months after its formal establishment, the Bank distributed the first currency bills ever issued by Indonesia’s Government popularly known at the time as ORI, or ‘Oeang Republik Indonesia’ (Currency of the Republic of Indonesia).
In fact, this day is commemorated annually as the National Finance Day while the date of the Bank's establishment - the 5th of July - was designated as National Bank Day
BNI’s legal status was upgraded in 1992 to that of a state-owned limited corporation under the name of PT Bank Negara Indonesia (Persero) and the bank decided to become a public company through its initial public offering of its shares in 1996.
In keeping with the spirit of the heroic national struggle that is rooted in its history, BNI strives to provide the best services for the country and to ultimately become the Pride of the Nation, today and always.
Historical records indicate that on the eve of the 30th of October 1946, or merely a few months after its formal establishment, the Bank distributed the first currency bills ever issued by Indonesia’s Government popularly known at the time as ORI, or ‘Oeang Republik Indonesia’ (Currency of the Republic of Indonesia).
In fact, this day is commemorated annually as the National Finance Day while the date of the Bank's establishment - the 5th of July - was designated as National Bank Day
BNI’s legal status was upgraded in 1992 to that of a state-owned limited corporation under the name of PT Bank Negara Indonesia (Persero) and the bank decided to become a public company through its initial public offering of its shares in 1996.
In keeping with the spirit of the heroic national struggle that is rooted in its history, BNI strives to provide the best services for the country and to ultimately become the Pride of the Nation, today and always.
Rabu, 01 September 2010
Response to the risk
Responses to minimize the risk.
There are several ways to minimize the risk;
1. Risk avoidance.
Either by removing of a particular threat or eliminating the source of risk. For example in removing the source of risk for contaminated land, the company create a better managed system related to the wasted materials so it doesn’t corrupted the land and building. And also for human error, the company stressed out the point how to work there for the workers so the workers will work accordingly, without creating any problems due to the human errors.
2. Risk reduction
When the risk is already occured, risk reduction may involve either lowering its probability or lessening its impact. For example in the company is that when the workers is pouring the chemical liquids from the barrel to the plactic bag. To reduce the damage of chemical reaction that irritates the skin, the workers use plactic glove.
3. Risk transfer
Insurance is the most popular technique for risk transfer in which only the potential financial consequences of a risk are transferred and not the responsibility for managing the risk. So in another words, this risk transfer is sharing the impact of the risk that being taken by the company with the third party. Sometimes the shared risk is about the financial impact of the certain accident.
4. Risk retention
In the case of planned risk retention, this involves the complete or partially assumption of the potential impact of the risk. In final, this risk reduction may only be cost-effective up to a point, thereafter becoming more costly than beneficial.
There are several ways to minimize the risk;
1. Risk avoidance.
Either by removing of a particular threat or eliminating the source of risk. For example in removing the source of risk for contaminated land, the company create a better managed system related to the wasted materials so it doesn’t corrupted the land and building. And also for human error, the company stressed out the point how to work there for the workers so the workers will work accordingly, without creating any problems due to the human errors.
2. Risk reduction
When the risk is already occured, risk reduction may involve either lowering its probability or lessening its impact. For example in the company is that when the workers is pouring the chemical liquids from the barrel to the plactic bag. To reduce the damage of chemical reaction that irritates the skin, the workers use plactic glove.
3. Risk transfer
Insurance is the most popular technique for risk transfer in which only the potential financial consequences of a risk are transferred and not the responsibility for managing the risk. So in another words, this risk transfer is sharing the impact of the risk that being taken by the company with the third party. Sometimes the shared risk is about the financial impact of the certain accident.
4. Risk retention
In the case of planned risk retention, this involves the complete or partially assumption of the potential impact of the risk. In final, this risk reduction may only be cost-effective up to a point, thereafter becoming more costly than beneficial.
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