Jakarta bourse the world's third best performing market

JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX) ended the year with a 70 percent gain, making the bourse one of the world's best performing markets.

According to data compiled by the Indonesian Capital Market Supervisory Agency (Bapepam), the JSX ranked third among the world's best performing markets in 1999 after South Korea's Seoul and Singapore stock exchanges.

The JSX Composite Index rose 70.06 percent during 1999 to close at 676.91 points on Thursday -- this year's last trading day. It comes after the Korea Composite Stock Price Index and Singapore's Straits Times index which respectively booked an 82.78 percent and a 78.83 percent gain for the year.

"The year 1999 is the recovery year for the Indonesian capital market," Bapepam's research bureau said in its year-end report issued on Thursday.

According to the report, The JSX Composite Index jumped to its highest point at 716.46 in mid-June and dipped to the lowest level at 327.31 in mid-March. The composite index closed last year's trading at 398.03 points.

Some analysts, however, downplayed the significance of such a gain on the JSX, saying that it was just an adjustment of high inflation rates over the past two years.

Nevertheless, they acknowledged that the gain was also a consequence of the improving political situation following the relatively peaceful general election in June, dubbed the first free and fair democratic election in four decades, and the election of President Abdurrahman Wahid in October.

Following the improvement on the political front and the strengthening of the country's macroeconomic indicators, companies operating in trade and service sectors were quick to respond to such improvements, Bapepam said.

Trade and service companies performed best on the JSX, booking a 241.82 percent gain during 1999.

The most sluggish companies were those in the agriculture sector, which booked a loss of 23.71 percent during the year.

The report said the average daily trading value stood at Rp 594.2 billion (US$85 million) for this year, compared to Rp 403.6 billion last year.

Market capitalization jumped to Rp 443.3 trillion this year from Rp 175.7 trillion last year.

Total shares traded during the year were at 177 billion, compared to 90.6 billion shares last year. And this year's total trading value stood at Rp 147 trillion, compared to Rp 99.7 trillion last year.

Nine companies held initial public offerings (IPOs) of shares this year, compared to only two companies last year, and as many as 29 companies conducted rights issues this year, compared to 18 last year. Six companies issued corporate bonds this year, as compared to only one last year.

Funds collected by companies issuing IPOs, bond issuances and rights issues this year were respectively Rp 371.4 billion, Rp 2.68 trillion and a massive Rp 129.14 trillion. Total funds mobilized through the capital market, therefore, reached Rp 132.2 trillion, compared to only Rp 5.1 trillion last year.

"As of now, Bapepam is evaluating the application of seven companies for IPOs, two for bonds issuances and another two for rights issues," Bapepam said in the report.

It said the number of mutual funds as of this December stood at 81 companies, about the same as last year's. But total funds under their management rose to Rp 4.5 trillion as of this month from Rp 3 trillion at the end of last year.

JSX management also reported on Thursday that it had delisted 20 companies in 1999, as compared to none in the previous year.

A lot of listed companies suffered from deteriorating financial conditions due to prolonged economic crisis.

The JSX also said that the volume of trading activities by domestic investors jumped to 65 percent, from 58 percent the previous year.

The trading on the JSX will be closed on Friday and Monday on year-end holidays. The trading will resume on Tuesday. (udi)