GDST Stocks Drop Sharply, Reach Red Zone

GDST shares slumped enough to grab the attention of investors. PT Gunawan Dianjaya Steel Tbk or what we also know as GDST has stock movements up to the red zone.

The decline in the company’s shares occurred on August 4 yesterday.

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GDST Share Value Drops

Recently, the stock of GDST experienced a significant decline. How not, the shares are only Rp 118 per share. The price is valid after experiencing a decline of up to 4.84%.

Regarding the highest level, the share price is only up to Rp. 125. While the lowest is Rp. 116 per share. This information is revealed in detail based on RTI data.

Regarding the decline in share prices, the company’s total trades totaled 1,838 times with a total of 302,340 shares.

Even from the frequency of trading carried out by the company, there were total transactions of Rp. 3.6 billion. It was clear that GDST’s stock had fallen sharply.

Causes of the Decline in Stock Prices

Stock prices can fall due to the following reasons.

Company Restructuring

One of the factors that affect the decline in stock prices is the occurrence of corporate restructuring. For example, the company is on the verge of acquisition. Investors, of course, are worried about the condition of their shares. No wonder the stock price is going down.

Under these conditions, investors are often afraid of not being able to adjust to the cultural differences between the two companies. Not to mention the stock dilution problem.

Still talking about corporate restructuring, dismissal of employees to policy changes also affect the decline in stock prices.

The reason is, this is related to financial problems and operational uncertainty that the company does.

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Weak Fundamentals

Reflecting on the declining stock of GDST, in addition to corporate restructuring, the decline in stock prices was also due to weak fundamentals. In this case, the company has declining profits and revenues.

The cause can be due to the loss of loyal customers, low quality of products or services, the number of competitors, the company’s image becomes bad, and so on.

If this happens, it invites questions from investors about the company’s ability to manage finances. More than that, gradually about debt financing is also a topic of discussion.

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Market Manipulation

Another thing that is also the cause of the decline in stocks is market manipulation. This condition is often carried out by experienced investors in their fields.

With large capital, investors often take advantage of the mass media.

But you need to be aware that this condition only occurs after a period of time. Stocks can rise and stabilize again if you look at the reputation the company has.

For this reason, we cannot deny that the company’s reputation does have a good impact. Therefore, it is important to build a company’s reputation so that its share price is always a lyrical investor.

GDST’s stock slump certainly surprised a number of parties, let alone investors. If you want to dive into this investment world, of course you also understand what causes stock prices to drop so you don’t feel a loss in the future. (R10/HR-Online)