Surabaya bourse profits plunge in 1996<\/p>\n
JAKARTA (JP): Lower trading activity on the Surabaya Stock
\nExchange has slashed the bourse's profits to Rp 10 million
\n(US$4,250) this year, down from Rp 1.76 billion last year, an
\nexecutive from the bourse said.<\/p>\n
Syahril Madjidi, a director of the East Java-based stock
\nmarket, said that the daily average trade value fell to Rp 16.59
\nbillion from Rp 21.36 billion last year.<\/p>\n
He predicted that the bourse's revenues would drop to Rp 4.1
\ntrillion (US$1.73 billion) this year from Rp 5.25 trillion last
\nyear as a result of the decline in the bourse's transaction
\nactivities.<\/p>\n
Trade activity was slow and only recovered after the bourse
\nlaunched a new trading system called Surabaya-Market Information
\nRemote Trading (S-Mart) in early October, said Syahril.<\/p>\n
Trade activity at the bourse then grew 22.07 percent, trade
\nvolume 112.23 percent and trade value 120.34 percent.<\/p>\n
He said the bourse would soon install new trading facilities
\nto boost transactions in the regular market next year. He said
\nthat at present regular market trading could not be carried out
\ncontinuously as it is done on the Jakarta Stock Exchange.<\/p>\n
\"At present, there is a time interval from one transaction to
\nanother,\" he was quoted as saying by Antara.<\/p>\n
With a continuous regular market, the bourse expects its
\nprofit to increase to Rp 200 million next year. He said the
\nbourse is still waiting for the new system to be approved by the
\nCapital Market Supervisory Agency (Bapepam).<\/p>\n
Like the JSX, the Surabaya bourse has four kinds of trading
\nactivities; regular trading, bloc trading, cross trading and odd-
\nlot trading boards. Trading activities in the regular market are
\nnot as active as those on the bloc and cross trading boards.<\/p>\n
Another bourse director, Anton Natakoesoemah, said the bourse
\nrecently signed an agreement with the American Nasdaq
\nInternational Market Initiative for technical and management
\nassistance.<\/p>\n
\"We hope technical assistance from Nasdaq will help us boost
\ntrading,\" he said.<\/p>\n
The SSE was established in 1989 as the first privately owned
\nstock market in the country and the only stock market located
\noutside Jakarta.<\/p>\n
Its earlier operation relied heavily on the government's
\nlisting policy, requiring share issuers to list their shares on
\nboth the Jakarta and Surabaya markets.<\/p>\n
At present most companies listed on the Jakarta Stock Exchange
\nare still required to maintain their cross listings.<\/p>\n
He said about 10 companies would list their shares on the
\nbourse next year.<\/p>\n
A total of 67 companies issued Rp 8.43 trillion worth of bonds
\non the bourse. Bonds worth Rp 4 trillion are expected to be
\nissued next year.<\/p>\n
Two companies, Surya Toto and Suba, delisted this year because
\ntheir shares were rarely traded, he said. (jsk)<\/p>",
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