System fault disrupts trading activities on JSX<\/p>\n
JAKARTA (JP): Trading activities on the Jakarta Stock Exchange
\n(JSX) were suspended for more than one hour during the afternoon
\nsession yesterday due to a fault in the trading system.<\/p>\n
Share prices declined 1.18 percent in thin trading.<\/p>\n
Stock transactions were suspended at 2:05 p.m., or five
\nminutes after the second session began, because the automated
\ntrading system failed to allow brokers to modify their bids.<\/p>\n
"We could put in our buy and sell orders but could not modify
\nany deals," a stock trader said.<\/p>\n
The trading system is known as the Jakarta Automated Trading
\nSystem (JATS).<\/p>\n
"The fault was not in the application program but in the
\nhardware network system," JSX director Mas Achmad Daniri told
\ntraders when announcing the lift of the suspension.<\/p>\n
The JATS system, which has been in operation since May 22 last
\nyear, is controlled by two trading engines that operate
\nsimultaneously, one of which functions as a back-up engine.<\/p>\n
"But today, the two engines failed to operate," Daniri said.<\/p>\n
"The two engines are meant to record the same stock
\ntransaction data but they failed to do so today," an informed
\ntrader told The Jakarta Post.<\/p>\n
The JATS application system allows brokers to modify their
\norders and withdraw their bids before any deals are done.<\/p>\n
"It's just too risky to trade in such conditions," the
\nchairman of the Jakarta Brokers Club, Nurkhamid Akhmad, told the
\nPost. "It became worse because in the first five minutes of the
\nsecond session dealers had already put in a lot of orders.<\/p>\n
"We have been informed about what happened, but don't know why
\nthe two engines failed," Nurkhamid added.<\/p>\n
Operational guidelines issued by the JSX management stipulate
\nthat in the event of a JATS malfunction, trading can be continued
\nmanually.<\/p>\n
However, the JSX management could not operate the manual
\nsystem because trading boards and other facilities were not
\navailable on the trading floor.<\/p>\n
"It would have been the first time that we had gone back to
\nthe old manual system," a trader with a local brokerage said.<\/p>\n
He added that brokers would have been unwilling to trade
\nthrough the manual system because their bids had been placed in
\nthe computerized system before the suspension.<\/p>\n
Daniri said that the suspension was lifted when the back-up
\nengine began to operate properly.<\/p>\n
Weak sentiment<\/p>\n
Stock prices on the JSX dropped 6.44 points to 537.51 points,
\nbringing total losses to 10.20 points, or 1.8 percent for the
\nfirst two days of the week.<\/p>\n
Losers outnumbered gainers 71 to 12, while 48 stocks were
\nunchanged yesterday.<\/p>\n
"The sentiment was so weak because foreign investors were
\nmostly sidelined. I think they are disappointed with reports of
\nthe first-half-year earnings of most big companies," a dealer
\nwith PT Asian Development Securities told the Post.<\/p>\n
"Moreover, they are also upset with the political situation in
\nthe country. They keep selling when stocks prices have already
\ndeclined significantly."<\/p>\n
Several dealers contacted by the Post also confirmed that the
\nprice drops were not attributable to the system fault.<\/p>\n
"I'm not sure if the market would have lost more than six
\npoints had there not been a suspension. It was obvious to me that
\nthere were a lot of selling orders from foreign investors before
\nthe suspension," one of dealers said.<\/p>\n
The dealer from Asian Development Securities said that most of
\nforeign brokerages, including HG Asia, WI Carr, Jardine Fleming
\nand ING Baring, were net sellers yesterday.<\/p>\n
Data from the JSX show that most of blue chips were among the
\nlosing stocks.<\/p>\n
Telkom fell Rp 50 (21 U.S. cents) to Rp 3,200 while Indosat
\nwas unchanged at Rp 7,150.<\/p>\n
Cigarette maker HM Sampoerna declined Rp 900 to close at Rp
\n22,500 while Gudang Garam dropped Rp 50 to Rp 8,675.<\/p>\n
Other losing stocks were Bimantara (which declined Rp 125 to
\nRp 2,025), Semen Gresik (down Rp 175 to Rp 5,475) and Bank
\nInternasional Indonesia (down Rp 100 to Rp 5,500). (alo)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/system-fault-disrupts-trading-activities-on-jsx-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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