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)