Healthcare Budget Increases: Will Hospital Stocks Follow Suit?

In August 2023, the Indonesian government announced that the health budget in the 2024 State Budget (RAPBN) reached Rp186.4 trillion, an 8.05% increase compared to this year's budget outlook.

Will this policy be a positive sentiment for hospital issuers?

Over the past month, the share prices of domestic hospital issuers have shown varied movement.

Of the 11 hospital issuers monitored by Databoks, only 4 saw their share prices strengthen in the last month, while 2 remained stagnant, and 5 weakened.

The biggest strengthening was experienced by PT Murni Sadar Tbk (MTMH), the issuer that manages Murni Teguh Hospitals Group. On August 11, 2023, MTMH's share price was at Rp1,370; by September 12, 2023, it had risen to Rp1,605.

Cumulatively, in the last month, MTMH's share price has strengthened by 17.15% (month-on-month/mom), far exceeding the movement of other hospital issuer shares.

Meanwhile, the deepest weakening was experienced by PT Royal Prima Tbk (PRIM). During the period of August 11-September 12, 2023, PRIM's share price weakened by 24.39% (mom) from Rp82 to Rp62.

Here's a breakdown of the share price movements of several hospital issuers in Indonesia from August 11 to September 12, 2023:

* PT Murni Sadar Tbk (MTMH): up 17.15% (mom)
* PT Sarana Meditama Metropolitan Tbk (SAME): up 9.94% (mom)
* PT Mitra Keluarga Karyasehat Tbk (MIKA): up 5.84% (mom)
* PT Medikaloka Hermina Tbk (HEAL): up 3.52% (mom)
* PT Metro Healthcare Indonesia Tbk (CARE): unchanged
* PT Bundamedik Tbk (BMHS): unchanged
* PT Famon Awal Bros Sedaya Tbk (PRAY): down 2.72% (mom)
* PT Sejahteraraya Anugrahjaya Tbk (SRAJ): down 3.76% (mom)
* PT Siloam International Hospitals Tbk (SILO): down 5.17% (mom)
* PT Kedoya Adyaraya Tbk (RSGK): down 15.13% (mom)
* PT Royal Prima Tbk (PRIM): down 24.39% (mom)