After a Post-COVID-19 Vaccination Dip, What is the Current Trend in Pharmaceutical Stocks?

Share prices of several pharmaceutical companies experienced a significant increase in the run-up to the start of the Covid-19 vaccination program on January 13, 2021. However, this increase was short-lived.

For example, shares of PT Kimia Farma Tbk (KAEF) and PT Indofarma Tbk (INAF) briefly reached Rp 6,975 at the close of trading on January 12, 2021. However, shares of these two state-owned companies immediately fell 6.8% to Rp 6,500 at the close of the following day.

The share price of PT Kalbe Farma Tbk (KLBF) also reached Rp 1,760 at the close of trading on January 11, 2021. However, its value decreased for two consecutive days, reaching Rp 1,565 at the close of trading after the vaccination program began.

The downward trend in the shares of these three issuers continued until the end of January 2021, then tended to stabilize until early June 2021. Since June 18, 2021, Kimia Farma and Indofarma shares have started to experience an upward trend again.

Kimia Farma shares reportedly reached Rp 3,310 on June 29, 2021. Meanwhile, Indofarma shares rose to Rp 3,340 on the same day.

However, Maximilianus Nico Demus, Director of Research and Investment at Pilarmas Investindo Sekuritas, believes that this significant increase in pharmaceutical shares is only short-term. In the medium and long term, the price has the potential to fall again.

The limited increase in pharmaceutical shares occurred because market players looked back at the significant decline in pharmaceutical shares some time ago. Therefore, this time, market players did not get caught up in the euphoria and were quicker to realize their profits.