Stock price drops caused by non-fundamental factors: Ruru<\/p>\n
JAKARTA (JP): The continued drops in share prices on the
\ncapital market over the last three weeks were caused by non-
\nfundamental factors rather than by declines in the performance of
\nthe country's economy.<\/p>\n
Bacelius Ruru, chairman of the Capital Market Supervisory
\nAgency (Bapepam), said here yesterday the price falls were caused
\nby the psychological impact of the yen's appreciation against the
\nU.S. dollar and increases in interest rates in the United States.<\/p>\n
\"The falls in share prices are in compliance with the downturn
\ntrend in the world's major stock exchanges,\" he told The Jakarta
\nPost.<\/p>\n
The JSX (Jakarta Stock Exchange) Composite Index, which hit
\n612.88 points in January this year, the highest level since 1992,
\ncontinued declining in the last three weeks to close around 25
\npercent lower at 460 points on Friday of last week. The index
\nrose for the first time in almost three weeks yesterday to close
\nat 458.73 from 457.29 on Thursday.<\/p>\n
Ruru estimated that the downward trends will not hold sway for
\na long time, given the bright outlook of the country's micro-
\neconomic and macro-economic conditions.<\/p>\n
\"The outlook of the country's economy remains promising. We
\nhave nothing to worry about,\" he said.<\/p>\n
A number of approaches, including plans to establish stronger
\nlegal procedures and to improve the stock trading system, have
\nbeen set fourth to develop the capital market in the country,
\nRuru said.<\/p>\n
He said the government, for example, will submit a new capital
\nlaw to the House of Representatives (DPR) in October this year
\nfor approval, replacing the present jurisdiction.<\/p>\n
Other approaches include the recent establishment of
\nsupporting agencies for the market, such as the share clearing
\nand depository agency (PT KDEI), the credit rating agency
\n(Pefindo) and the Public Information Service Office (PISO).<\/p>\n
The trading system on the Jakarta Stock Exchange (JSX) will
\nalso be fully computerized next January to expedite share
\ntransactions.<\/p>\n
\"These approaches will bring a fresh impetus in stock
\ntrading,\" he said. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stock-price-drops-caused-by-non-fundamental-factors-ruru-1447893297",
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