Jakarta branch contributes over 90% of SSE's trading volume<\/p>\n
JAKARTA (JP): The Jakarta representative office of the
\nSurabaya Stock Exchange (SSE) contributes more than 90 percent to
\nits total share trading volume, says an executive of the market.<\/p>\n
Helmy Azwari, the chief representative, said here yesterday
\nthat in June alone, his office recorded a trading volume of 90.83
\nmillion shares which accounted for 97.71 percent of the East
\nJava-based market's total trading volume.<\/p>\n
\"Our contribution to the total trading volume has reached more
\nthan 90 percent since we began operations,\" he told The Jakarta
\nPost.<\/p>\n
The SSE opened its representative office here last October to
\ngive easier access to Jakarta-based investors through its
\ntelephone-linkage trading system. It's opening has significantly
\nboosted trading activities.<\/p>\n
The market's monthly trading volume reached only between 8.5
\nmillion and 47.5 million shares before the opening of the
\nrepresentative office.<\/p>\n
\"It initially seems odd that transactions at the
\nrepresentative office are greater than those at headquarters. But
\nit is logical since most of the investors are based in Jakarta,\"
\nhe said.<\/p>\n
He said that the operation of the representative office has
\nprovided investors with more alternatives to buy or to sell their
\ncapital hares.<\/p>\n
\"Investors often take advantage of our lower transaction fees.
\nSome benefit by the difference in prices. Others profit because
\nof the time lag between the transactions on the JSX and SSE,\" he
\nsaid.<\/p>\n
The SSE was established in 1989 and its operation is given the
\nfull support of the Capital Market Supervisory Agency (Bapepam),
\nwhich used to require new stock issuers list their shares both on
\nthe JSX and SSE. The double listing requirement was lifted last
\nyear following the privatization of the JSX. This forced the SSE
\nto cut both its listing and transaction fees to make the market
\nremain attractive to share issuers and the investing public.<\/p>\n
Unity<\/p>\n
Many capital market analysts have suggested the government
\nunite the two markets in order to cut operational costs.<\/p>\n
Helmy said that the operation of the two markets remains
\nimportant to avoid a monopoly, which could hurt both the
\ninvesting public and listed companies.<\/p>\n
\"The operators of the two market have to compete each other to
\nattract investors and share issuers. This will consequently
\nbenefit capital market players,\" he said.<\/p>\n
He said the capital market is still relatively new and that an
\nintensive promotion is needed to encourage the public to engage
\nin stock trading activities.<\/p>\n
If each of the country's stock exchanges -- the JSX, the SSE
\nand the Over-the-Counter market -- has a special program to
\npromote public awareness about the market, the result will then
\nbe better than if the promotion drive was carried only by a
\nsingle agency, he said.<\/p>\n
\"We need more than one market as we are still in the process
\nof learning,\" he said.<\/p>\n
The total trading on the SSE increased sharply to 266.8
\nmillion shares worth around Rp 1.14 trillion (US$542 million)
\nlast year from only 38.1 million shares worth Rp 136.5 billion in
\nthe previous year.<\/p>\n
As many as 160 public companies were listed on the SSE as of
\nMarch, with total market capitalization of around Rp 63.81
\ntrillion, in addition to 29 bond issuers. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jakarta-branch-contributes-over-90-of-sses-trading-volume-1447893297",
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