JSX to launch two new instruments next year<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The Jakarta Stock Exchange (JSX) plans to launch two new
\nmarket instruments next year in an attempt to increase revenues
\nand help attract more investors into the stock market.<\/p>\n
JSX president director Erry Firmansyah said the two new
\ninstruments were close-end mutual funds for real estate and
\nAmerican Warrants.<\/p>\n
\"The launching of the products are expected to increase the
\nparticipation of investors in the stock market and to help raise
\nour revenues,\" said Erry during a media briefing on Friday.<\/p>\n
The JSX projected operational revenue of Rp 100 billion
\n(US$11.1 million) next year, up from the Rp 78.1 billion
\nestimated for this year.<\/p>\n
Close-end mutual funds for real estate include mutual funds
\nwith revenues from property businesses as their underlying
\nassets. Unlike ordinary mutual funds, also known as open-end
\nfunds, this instrument will be traded like financial securities
\nonce they are issued.<\/p>\n
Holders of the portfolios must sell their units in the stock
\nmarket to receive their funds back.<\/p>\n
Meanwhile, American Warrant is a warrant that can be withdrawn
\nat any time during the period of the warrant. One other warrant,
\nwhich can only be withdrawn on its expiry date is called the
\nEuropean Warrant.<\/p>\n
Elsewhere, during the briefing, Erry also expressed his
\nconcerns over the low-rate participation of local investors in
\nthe stock market, citing a lack of knowledge about the stock
\nmarket as the main reason that impeded them from investing.<\/p>\n
\"There are currently about 100,000 retail investors that can
\nbe tracked, while those who could not be tracked may reach
\n200,000. The figure is still low,\" said Erry.<\/p>\n
Retail investors who cannot be tracked usually use the account
\nof their stock brokers to invest in the stock market in order to
\navoid taxes, while those who can be tracked have their own
\naccount.<\/p>\n
According to Erry, foreign investors accounted for 55 percent
\nof investment activities in the stock market. The Jakarta stock
\nmarket has a capitalization of Rp 650 trillion with an average
\ndaily transaction value of Rp 1.12 trillion.<\/p>\n
In a bid to increase the liquidity of the market, starting on
\nJan. 3, the bourse will introduce a new pricing mechanism for
\nshares being traded in the stock market.<\/p>\n
According to Erry, shares being traded at below Rp 500 each
\ncan move up or down by Rp 5.<\/p>\n
Shares being traded between Rp 500 and Rp 2,000 can move at Rp
\n10, between Rp 2,000 and Rp 5,000 at Rp 25, and above Rp 5,000 by
\nRp 50.<\/p>\n
As for companies whose share prices are below Rp 25, the JSX
\nhas encouraged them to conduct a stock reversal to increase the
\nvalue of their price, or to launch corporate actions to raise
\ninvestor confidence in the shares.<\/p>\n
Erry said there were currently eight companies with share
\nprices below Rp 25.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-to-launch-two-new-instruments-next-year-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}