JSX share price spread revised<\/p>\n
JAKARTA (JP): The Jakarta Stock Exchange (JSX) will change the
\nprice spread in share trading to Rp 5 from the existing Rp 25
\nearly next month, according to JSX president Mas Achmad Daniri.<\/p>\n
Daniri said here on Tuesday that each point of the JSX
\nComposite Index -- starting on July 3, 2000 -- would be worth Rp
\n5 to achieve improved market liquidity.<\/p>\n
\"We expect an increased trading volume following the change of
\nthe price spread to a lower denomination. This is what happened
\nto other bourses in other countries when they did the same,\"
\nDaniri said.<\/p>\n
He said the change in the price spread was also accompanied by
\na revision in the maximum price with which share bidders could
\nmake bids on top of a market price of a certain share.<\/p>\n
The existing rules allow bidders to make a maximum bid of Rp
\n200 (equivalent to eight points based on the Rp 25 price spread)
\non top of the existing market price of a share.<\/p>\n
With the new rule in place, Daniri said, companies would be
\nbroken into three groups.<\/p>\n
The first group will comprise companies with a share price of
\nless than Rp 500 each. In this group bidders will have a maximum
\nbid of Rp 50.<\/p>\n
The second group will comprise companies with share prices
\nbetween Rp 500 and Rp 5,000. Bidders in this group will be
\nallowed to make a Rp 200 maximum bid on top of a share market
\nprice.<\/p>\n
And the third group will comprise companies with a share price
\nabove Rp 5,000, with bidders being allowed to make Rp 500 maximum
\nbids, according to Daniri.<\/p>\n
Daniri said the way the companies were grouped would create
\nfairer play in share trading, and better yet would prevent market
\nmanipulations. (udi)<\/p>",
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