Jakarta Stock Exchange introduces sector indices
Jakarta Stock Exchange introduces sector indices
JAKARTA (JP): The Jakarta Stock Exchange (JSX) said yesterday that it has introduced 10 JSX Sector Indices to provide a more comprehensive market information to investors.
Currently there are two indices available from the exchange: the JSX composite index and the individual company index.
The 10 sector indices, issued last Tuesday, are based on 10 industrial sectors; agriculture, mining, basic industry and chemicals, light industry, consumer goods, property and real estate, infrastructure and transportation, finance, trade & service and manufacturing.
Manufacturing is a combination of basic, chemicals, light and consumer goods industries.
A director of JSX, Mas Achmad Daniri said that the exchange has established the basis date of Dec.28, 1995 with the basis point of 100 for the sector indices.
The sector indices are calculated by dividing the market value of all companies in the sector with the index basis value of each sector.
The index basis value for each sector is as follows: Rp 128 billion (agriculture), Rp 1.9 trillion (mining), Rp 31.8 trillion (basic industry and chemicals), Rp 10.2 trillion (light industry), Rp 37.7 trillion (consumer goods), Rp 8.8 trillion (property), Rp 38.2 trillion (infrastructure), Rp 13.5 trillion (finance), Rp 79.8 trillion (manufacturing).
JSX's president Hasan Zein Mahmud said that the issuance of JSX sector indices will help interested parties get a more accurate picture of the market because the indices will show the trend of various industries at the exchange.
"As the market develops, it is hoped that the JSX sector indices will reflect the overall prospect of various industries in the country," Hasan said.
Daniri told the Jakarta Post that sometimes investors judge the market based on the composite index only. The composite index cannot reflect all the individual stocks, let alone a particular sector. Therefore, the publication of sector indices will allow investors to plan better investment strategies. (08)