Stock market performs much better this year<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The Jakarta Stock Exchange fared better this year with market
\ncapitalization -- the total value of stocks traded in the bourse
\n-- increased by 10.5 percent compared to last year, due largely
\nto a steady improvement in the key areas of the domestic economy.<\/p>\n
The Capital Market Supervisory Agency (Bapepam) said that the
\nimproving domestic economy had pushed up share prices and
\nincreased the number of listed shares, both of which helped put
\nthe exchange's market capitalization at Rp 267.5 trillion (about
\nUS$28.3 billion).<\/p>\n
It was higher than last year which stood at Rp 239.3 trillion,
\naccording to Bapepam in its year-end reports released on Friday.<\/p>\n
This year's improved market performance was also reflected in
\nits average daily transaction value which reached Rp 493.1
\nbillion, higher than last year's average of Rp 396.4 billion.<\/p>\n
Bapepam also said that the improvement in the domestic stock
\nmarket should have moved at a faster pace had it not been
\naffected by various problems resulting from both internal and
\nexternal factors.<\/p>\n
From the external front, the local market had to weather the
\nmassive storm following revelations of a number of bookkeeping
\nscandals in the U.S.<\/p>\n
The high-profile scandals, which involved giant companies such
\nas WorldCom, Enron and Merck, had not only rocked the U.S. market
\nbut also shocked the business world and hurt many investors
\naround the world, including Indonesia.<\/p>\n
This added to the pressures resulting from the continued shaky
\neconomic performance in the world's major economic powers such as
\nJapan and the U.S., which signaled that the world economic
\nrecovery was still a long way off.<\/p>\n
Meanwhile, the devastating Oct. 12 terror attacks in the
\ncountry's top tourist spot, Bali proved to be the hardest blow
\nfor the local market to deal with.<\/p>\n
It has been devastating for the tourism sector, but what's
\nmore harmful was that it hampered efforts to revive the already
\ndwindling confidence on the part of investors.<\/p>\n
The result was so damaging that the Jakarta Composite Index
\nwas dragged down to record lows on Oct. 14. It closed the trading
\nday at 337.47 points, the lowest in four years.<\/p>\n
But, the market managed to survive all the scares, and in
\nfact, Bapepam said, it was heading into next year on an
\noptimistic note.<\/p>\n
Based on assumptions of continued progress in macroeconomic
\nindicators, the agency predicted an even brighter outlook for
\n2003, which includes a rise in the exchange's average daily
\ntransaction value to Rp 600 billion.<\/p>\n
"The number was based on various assumptions, such as a 4.5
\npercent economic growth, 9 percent inflation and the rupiah
\nexchange rate of 9,000 against the U.S. dollar," Bapepam said,
\nadding that it also targeted around 40 new companies to be listed
\nin the bourse.<\/p>\n
The market saw this year as many as 22 companies enter the
\nbourse.<\/p>\n
The 2003 state budget assumes an economic growth of 4 percent,
\ninflation of 9 percent and the rupiah's exchange rate of 9,000
\nper dollar.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stock-market-performs-much-better-this-year-1447893297",
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"sponsor": "Okusi Associates",
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