Stock Liquidity Analysis Today 25 June 2024

Shares with high liquidity offer various benefits for investors. They can be easily bought and sold on the stock market without causing significant price changes. This high liquidity is a clear indicator that many buyers and sellers are actively trading the shares, facilitating quick and efficient transactions. Shares with high liquidity exhibit several key characteristics. They have a high trading volume, meaning they are traded in large quantities every day. The bid-ask spread, which is the difference between the highest buying price a buyer is willing to pay (bid) and the lowest selling price a seller is willing to pay (ask), is relatively small. This indicates a high level of market activity. These shares also have stable prices, with stock fluctuations being more controlled and not quickly fluctuating sharply due to individual transactions. Lastly, they are easy to trade, allowing investors to quickly buy or sell shares without waiting a long time or significantly influencing the price.

Shares with high liquidity are usually shares from large, widely known companies with large market capitalization, such as those in major indices such as the IHSG (Composite Stock Price Index), the S&P 500, or the Dow Jones Industrial Average. As of June 25th, 2024, here are some stocks with high liquidity listed on the Indonesian Stock Exchange, that is Adaro Energy Indonesia Tbk with a market capitalization of IDR 87T, Baramulti Suksessarana Tbk with IDR 10.49T, Bayan Resources Tbk with IDR 505.83T, Ultra Jaya Milk Industry Tbk with IDR 21.37T, Indo Tambangraya Megah Tbk with IDR 27.01T, Prima Andalan Mandiri Tbk with IDR 18.49T and Impack Pratama Industri Tbk with IDR 18.99T. Most of these companies are mining companies with market capitalization, which indicates high liquidity potential because large companies attract more investors and trade more actively. It is Indonesia’s largest coal mining company, with well-diversified mining operations in several locations. It also has well-integrated coal exploration, production, and marketing activities for domestic and international markets. In general, stocks with larger market capitalizations tend to be more liquid. Still, additional analysis of daily trading volume and bid-ask spread is also necessary for a more accurate liquidity assessment. In conclusion, high liquidity is essential to investors because it allows them to enter quickly and exit positions, reduces the risk of being unable to sell shares when needed, and usually indicates a more efficient market.