I. Company Profile of BISI INTERNATIONAL

Bisi International is Indonesia’s Leading Hybrid Seed Producer. Established in 1983, PT BISI International Tbk is Indonesia’s largest producer of hybrid seeds for corn, rice, and fruits and vegetables, a major Indonesian producer of pesticides and a distributor of fertilizer. The Company’s head office is located in Sidoarjo, East Java, with its plant located at Desa Sumber Agung, Kediri, East Java. The Company was founded by the Charoen Pokphand Group, and has an operating track record of 24 years.

Today, BISI maintains a nationwide operational footprint for research and development, production, marketing, distribution and sales. BISI has three subsidiaries;

(1) PT Tanindo Intertraco which distributes and markets hybrid corn, rice and vegetable seeds and agri-related products,

(2) PT Multi Sarana Indotani which manufactures pesticides, and

(3) PT Tanindo Subur Prima which distributes and markets only vegetable seed imported from China Thai Seed Co Ltd.





Vision: Feed A Growing World.

Mission: As global demand for food, feed, fuel and fiber increases, we deliver innovative products, technology and support to help farmers increase productivity Vision of International, Tbk: Feed A Growing World.





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II. ANALYSIS

Stock price index is an indicator that shows the movement of stock prices. Index has function as an indicator of market trends, which means the movement of the index describes market conditions at any time, whether the market is active or weak.

Index will help us to know the trend of stock price movement today; whether it is rising, steady or falling. The movement of the index becomes an important indicator for investors to determine whether they will sell, hold or buy one or several shares because stock prices have quickly movement.

In Indonesia Stock Exchange, there are 6 (six) types of indexes, but we will concern only in two types following:

a. Composite Stock Price Index or Indeks Harga Saham Gabungan (IHSG), using all of the shares that listed as a component of the index calculation.

b. LQ45 Index, index which consists of 45 active stocks with reference to trading liquidity variables and market capitalization. Every 6 months there are new stocks coming into the LQ45.

Daily Market and Stock Return

Before that we will explain about rate of return from Bisi International. The function of risk of return is to know the gain or losses when the investor buys the stock. Because of that, investor should see the market return to know about gain or loss when they buy the stock. In general rate, the nominal return measures how much more money you will have at the end of the year if you invest.

The conclusion, market return that shows positive number will giving gain and the negative number will produce losses for investors. From the both, LQ45 is therefore a more comprehensive index than the IHSG. Also, it measures the performance of a portfolio that holds shares in each firm in proportion to the number of shares that have been issued to investors.

Average of Daily Stock and Market Return

From average of daily stock returns and daily market returns for 2 years, we can know about the company’s the benefit or losses for the investor when the investor invest their money in the company.

The Bisi International average of daily stock return in 2 years is 0.00036063, so the company gives only small gain for the investor who invests in this company, although it is only small gain. It can be based for investors to invest in the next future. So investors can be choose Bisi International as a save stock option.

Graphic of Daily Stock and Market Return

(click the picture to enlarge)

· According to data from IHSG and LQ45, we can see that the lowest Daily Market Return in October 8, 2008, it might be happen because of several things. Indonesia Stock Exchange Authority (IDX) has decided to close the stock trading on the sessions I started at 11:08 am, because of the destruction Index Composite Stock Price (JCI), which plummeted by 10.38%. Only 6 stock price rises, the remaining 171 stocks fell and 9 shares stagnant. And we think that Bisi International is the one of 171 stocks that was fall.

· So, that’s why Bisi International also got a very significant numbers until -0.24369748, when the IHSG got 0.10375250 and LQ45 got -0.1186399 on their Daily Market Shares. From the graphic, we can see that Bisi International (it show in blue line)has very active in trading because compare to IHSG and lq45, the line show it move rise and fall too narrow.

· The reason why that IHSG daily market share on January 23, 2008 get the highest number because, after devastated to 2200 levels, eventually the stock price composite index (JCI) successfully rebound. Strength sentiment from The Fed could raise the global market. JCI on trading Wednesday (23/1/2008) closed rise 7.92 percent, or 181.754 to positions 2476.278.

· For the LQ45, we can see that it was increase in the highest point in 30 June 2008. From the report we can know that it increased because of a mining sector. Between the other, LQ45 also has the highest number of Daily Market Return at 0.1053279 compared to the Bisi International and IHSG Stocks when it was 0.00728525 and 0.01923077 in 30 June 2008.

Deviation Standard of Daily Stock and Market Returns

To make investment, investors must pay attention with the risk of market stock. To measure the risk and volatility, investor need to know amount of variance and standard deviation between stock and market index. Because standard deviation is simply square root of variance, it too is a natural to measure risk.

According to historical stock of Bisi International, the standard deviation is 0.045533613 it means Bisi international has low risk. So investor can invest their money in this company because the risk is low. It can be happened because the movement of stock price in Bisi is not too narrow. But it gave impact for gain and losses of this company. The gain and losses that received by investors is relatively small.

Of course, there is no reason to believe that the market’s variability should stay the same over many day, we can see that from the graphic. But, risk still can be measure by the fluctuations of overall stock market. We do not look at the stock in isolation because the risks that loom when you’re up close to a single company are often diversification.

Noted that market risks are macro risk, investors holding diversified portfolios are mostly concerned with macroeconomics risk. They do not worry about microeconomics risks peculiar to a particular company of investment project.

III. CONCLUSION

Based on the analysis has been done, it can be seen that within two years, the movement of the market return from IHSG and LQ45 less volatile. It means that the movement of capital gain and losses from the common stock market not change rapidly. In general, the market return is very influential on the stock return.
We can see from the data, On June 3, 2009, IHSG on the first closing position so strong over the level Rp2.000. And then in the afternoon the index rise 22.625 points, or 1.13 percent to level of Rp2.021,27. In Indonesia Stock Exchange (IDX), LQ45 index that rose 5.506 points to 396.332. This caused the shares of PT Bisi International., Tbk is rise for Rp320 become Rp2.200.

The return will influence the risk of the company. If the return of daily market and stock not change in large range, the risk will be lower too. The standard deviation of Bisi International is 0.045533613. It means the return of Bisi is very low so the risk low. And if we see from IHSG and LQ45 the standard deviation are 0.020389874 and 0.024094065. So the conclusion, the risk of the company that include in LQ45 and IHSG have low risk. The return and risk of IHSG and LQ45 are low so the risk and return of the company low too. It is because the analysis stock movement is depending on market movement.

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