Toll Road Divestiture Fails, Waskita Shares Drop 11 Percent

The divestment of 10 toll road sections by PT Waskita Karya (Persero) Tbk through its subsidiary, PT Waskita Toll Road, scheduled for the second quarter of 2017, ultimately failed. This news prompted investors to sell off shares of WSKT, the company's trading code. As a result, the price of the government-owned company's shares closed down 11.27 percent on Tuesday (September 12th), reaching Rp 1,890 per share compared to the previous day's closing price.

According to Waskita Karya's disclosure to the Indonesia Stock Exchange, the toll road divestment did not proceed because potential investors did not meet the target expectations of PT Waskita Toll Road. However, the divestment will continue to secure funding for infrastructure projects, particularly toll roads.

Based on the technical indicator, the 14-day Relative Strength Index (RSI) for WSKT shares is at 22.3 on a scale of 0-100. This could be considered a buying opportunity as the share price is now quite low after a significant discount. A level of 30 indicates an oversold condition, as does a level of 70. From a fundamental perspective, WSKT's revenue in the first half of 2017 almost doubled to Rp 15.8 trillion compared to the same period the previous year. Net profit also more than doubled to Rp 1.2 trillion. Similarly, earnings per share (EPS) increased by more than 100 percent to Rp 1,281.9 per share.