Jakarta bourse the world's third best performing market<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
\nended the year with a 70 percent gain, making the bourse one of
\nthe world's best performing markets.<\/p>\n
According to data compiled by the Indonesian Capital Market
\nSupervisory Agency (Bapepam), the JSX ranked third among the
\nworld's best performing markets in 1999 after South Korea's Seoul
\nand Singapore stock exchanges.<\/p>\n
The JSX Composite Index rose 70.06 percent during 1999 to
\nclose at 676.91 points on Thursday -- this year's last trading
\nday. It comes after the Korea Composite Stock Price Index and
\nSingapore's Straits Times index which respectively booked an
\n82.78 percent and a 78.83 percent gain for the year.<\/p>\n
\"The year 1999 is the recovery year for the Indonesian capital
\nmarket,\" Bapepam's research bureau said in its year-end report
\nissued on Thursday.<\/p>\n
According to the report, The JSX Composite Index jumped to its
\nhighest point at 716.46 in mid-June and dipped to the lowest
\nlevel at 327.31 in mid-March. The composite index closed last
\nyear's trading at 398.03 points.<\/p>\n
Some analysts, however, downplayed the significance of such a
\ngain on the JSX, saying that it was just an adjustment of high
\ninflation rates over the past two years.<\/p>\n
Nevertheless, they acknowledged that the gain was also a
\nconsequence of the improving political situation following the
\nrelatively peaceful general election in June, dubbed the first
\nfree and fair democratic election in four decades, and the
\nelection of President Abdurrahman Wahid in October.<\/p>\n
Following the improvement on the political front and the
\nstrengthening of the country's macroeconomic indicators,
\ncompanies operating in trade and service sectors were quick to
\nrespond to such improvements, Bapepam said.<\/p>\n
Trade and service companies performed best on the JSX, booking
\na 241.82 percent gain during 1999.<\/p>\n
The most sluggish companies were those in the agriculture
\nsector, which booked a loss of 23.71 percent during the year.<\/p>\n
The report said the average daily trading value stood at Rp
\n594.2 billion (US$85 million) for this year, compared to Rp 403.6
\nbillion last year.<\/p>\n
Market capitalization jumped to Rp 443.3 trillion this year
\nfrom Rp 175.7 trillion last year.<\/p>\n
Total shares traded during the year were at 177 billion,
\ncompared to 90.6 billion shares last year. And this year's total
\ntrading value stood at Rp 147 trillion, compared to Rp 99.7
\ntrillion last year.<\/p>\n
Nine companies held initial public offerings (IPOs) of shares
\nthis year, compared to only two companies last year, and as many
\nas 29 companies conducted rights issues this year, compared to 18
\nlast year. Six companies issued corporate bonds this year, as
\ncompared to only one last year.<\/p>\n
Funds collected by companies issuing IPOs, bond issuances and
\nrights issues this year were respectively Rp 371.4 billion, Rp
\n2.68 trillion and a massive Rp 129.14 trillion. Total funds
\nmobilized through the capital market, therefore, reached Rp 132.2
\ntrillion, compared to only Rp 5.1 trillion last year.<\/p>\n
\"As of now, Bapepam is evaluating the application of seven
\ncompanies for IPOs, two for bonds issuances and another two for
\nrights issues,\" Bapepam said in the report.<\/p>\n
It said the number of mutual funds as of this December stood
\nat 81 companies, about the same as last year's. But total funds
\nunder their management rose to Rp 4.5 trillion as of this month
\nfrom Rp 3 trillion at the end of last year.<\/p>\n
JSX management also reported on Thursday that it had delisted
\n20 companies in 1999, as compared to none in the previous year.<\/p>\n
A lot of listed companies suffered from deteriorating
\nfinancial conditions due to prolonged economic crisis.<\/p>\n
The JSX also said that the volume of trading activities by
\ndomestic investors jumped to 65 percent, from 58 percent the
\nprevious year.<\/p>\n
The trading on the JSX will be closed on Friday and Monday on
\nyear-end holidays. The trading will resume on Tuesday. (udi)<\/p>",
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