GOTO's Sweet May 2023 Close: Stock Soars 34.86%

PT GoTo Gojek Tokopedia Tbk ended May 2023 on a positive note. Shares of the technology issuer, coded GOTO, rose 34.86% or 38 points to Rp147 per share at the close of trading on Wednesday (31/5/2023). This is despite the share price touching Rp104 earlier in the day.

RTI Business data shows that GOTO shares were traded with a volume of 45.94 billion shares, valued at Rp6.44 trillion. The frequency reached 54,730 times. GOTO's market capitalization reached Rp174.1 trillion.

As reported by *Katadata*, this level represents the highest increase in the last month, following a 9% increase on May 4th and an 8.26% increase on May 10th, 2023.

The increase is most likely due to the company's shares officially being included in the Morgan Stanley Capital International (MSCI) Global Standard Indexes today. GOTO replaced cigarette issuer PT Gudang Garam Tbk (GGRM), which was previously included in the index.

GOTO's inclusion as a constituent of the MSCI index was anticipated by many analysts to attract foreign capital inflow into the shares resulting from the merger of Gojek and Tokopedia.

GOTO's share price has frequently traded in the red. GOTO hit the lower auto reject (ARB) limit on Friday (26/5/2023), plunging 6.31% or 7 points to Rp104.

(See also: GoTo's Losses Swell in 2022, Exceeding Losses of Grab and Sea Ltd)

Back on February 15, 2023, the share price touched Rp105 and remained virtually unchanged. Analyst and Founder of Traderindo, Wahyu Laksono, explained the reasons in an interview with *SWA Online*.

The reasons are predicted to stem from negative global sentiment regarding the Fed's aggressive rate hikes, triggering liquidity shortages. Furthermore, the US dollar exchange rate rose, and many assets weakened. However, according to Wahyu, since last December, GOTO had already significantly fallen and was oversold below the Rp100 level.

"Since then, it can't be said to have plummeted anymore because it consolidated around the low level. January was even a good month. Not just GOTO, but Bukalapak too, along with the strong rebound of the Nasdaq. The January champion was the transportation index. Number two was technology," said Wahyu to *SWA Online* via telephone on Tuesday (15/06/2023).

Wahyu observes that almost all technology issuers that fared poorly were oversold at the end of last year and 'fought back'. They were supported by a global sentiment rebound due to the easing of the Fed's aggressiveness. Wahyu also believes that levels below Rp100 are potentially attractive to investors.

"GOTO's current movement is more speculative buying and sentiment-driven. There are no significant fundamentals to trigger a bullish trend reversal. Including internal restructuring, commissioners, or even the board of directors, there is no guarantee of a positive outcome and triggering such a reversal," said Wahyu.

As reported by *CNN Indonesia*, GoTo President Patrick Cao also stated that macroeconomic conditions were one of the causes of the company's share price decline. Other factors include capital market conditions, competition, and company performance.

(See also: Many Sell GOTO Shares, This is the Composition of Holders at the End of April 2023)