PT Cottonindo AriestaTbk. is an integrated upstream to downstream cotton company for beauty and pharmaceutical purposes has listed on the Indonesia Stock Exchange since Friday, 5 October 2018 and has obtained from the Indonesia The Financial Services Authority or OJK (Otoritas Jasa Keuangan) as a “sharia stock” with the name as “KPAS” stock code.
OJK has issued the OJK Board of Commissioners Decree related to the stipulation of Sharia Securities for CottonindoAriestaas emiten, namely Decree Number: KEP-53 / D.04 / 2018 concerning Stipulation of PT Cottonindo AriestaTbk stock. As a Sharia Securities with the KPAS share code. The issuance of the Financial Services Authority’s Board of Commissioners Decree, the “KPAS” Securities are included in the List of Sharia Securities as stipulated by the Financial Services Authority’s Board of Commissioners Number KEP-24 / D.04 / 2018 dated May 24, 2018 concerning List of Sharia Securities. The issuance of the decision was a follow-up to the review of the Financial Services Authority regarding the fulfillment of Sharia Securities criteria for the Registration Statement submitted by PT Cottonindo AriestaTbk.
Currently, the Investment Managers (MI) company,which manage the sharia equity funds and the sharia mixed-fund mutual funds have additional sharia stock in their list, that can be considered the one of the portfolio member for the next coming days. “KPAS” shares will also be able the one of the investment objectives of institutional investors such as Sharia Insurance Companies, Pension Funds that have sharia investment directives and other institutions that have sharia preferences for their stock portfolios. With the increase in “captive market” for KPAS shares can make the demand for these stocks to increase at this time; it will be increased the liquidity, and will have brighter prospects. According to a number of senior fundmanagers, who manage sharia-based mutual fund portfolios, when market conditions are relatively have a high volatility as happened in the 2nd Semester in 2018, historically sharia-based stock shares have lower fluctuations and grow with a more positive trend. It could be a positive signal for KPAS stack and will be chosen as a member of the fund manager preferrence in their portfolio.