Jakarta stocks shine despite lower trading on last day

Rendi A. Witular, The Jakarta Post, Jakarta

Despite a slowdown in the economy as a result of the instable macroeconomic condition, the Jakarta stock market has again become the best performing bourse in Southeast Asia, booking a 16.39 percent rise since the start of the year.

While the Jakarta Composite Index (JCI) ended its last trading session on Thursday slightly lower, cheers and hollers of joy still marked the year-end celebration at the stock exchange floor.

"The performance of our stock market is not bad after all, particularly considering the economic turmoil that we faced this year," said Darmin Nasution, chairman of the Capital Market Supervisory Agency (Bapepam).

Darmin is upbeat the bourse will continue to crack another record high next year, on an estimated better economy, and a relatively lower price earning ratio (PER), which would provide more room for investors to participate.

The stock index fell slightly by 1.5 points, or 0.1 percent, to 1162.63 on Thursday after slow trading ahead of the New Year's holiday. Trading in the bourse will start again on Jan. 2, and is scheduled to be opened by Vice President Jusuf Kalla.

Based on the Bapepam report, trading on the Jakarta stock market surged overall by 16.39 percent to 1,164.14 on Dec. 28, from 1000.23 recorded at the closing of last year's trading.

Market capitalization in the bourse rose by 17.78 percent to Rp 800.8 trillion (US$81.7 billion) on Dec. 28 from Rp 679.9 trillion last year, with the total transaction value also increasing by 64 percent to Rp 405.3 trillion from Rp 247 trillion.

On a daily basis, the transaction value jumped to an average of Rp 1.67 trillion this year from Rp 1.02 trillion last year.

Compared to other bourses in the region, the Jakarta market still has a lower PER, staying at 11.34 times. Bourses in Singapore and Malaysia have a PER at around 15 times.

Still, the solid performance in the bourse was not followed by the increased participation of the corporate sector in seeking funding resources from the market.

Jakarta Stock Exchange (JSX) president director Erry Firmansyah said that there were only eight companies listed on the bourse this year, down by 33.3 percent from 12 companies last year.

"Although there is a decline in the number of IPOs (initial public offerings) this year, the value of the offerings increased by 61.6 percent to Rp 3.54 trillion from Rp 2.19 trillion last year," said Erry.

The JSX also reported that only two companies -- Bank Global and PT Multi Agro Persada -- delisted from the bourse.

For next year, the JSX anticipates 20 companies planning for an IPO, and 35 existing companies mulling selling more shares and giving out bonus shares. Daily transaction is projected to reach an average of Rp 1.2 trillion within 247 trading days.

Elsewhere, Bapepam reported a 56.9 percent decline in the value of bond issues this year by the corporate sector, with only 19 companies issuing a total of Rp 8.25 trillion worth of bonds from Rp 19.17 trillion last year.

In the mutual fund sector, Bapepam reported a sharp decline in the net asset value (NAV) of the industry within just one year, from Rp 104.03 trillion last year to only Rp 29.17 trillion in December following the recent problems in the industry.

The decline was also seen in the participation of investors in mutual funds from 299,063 individuals and institutions last year to only 275,128.

In the law-enforcement sector, Bapepam disclosed that it had handed down financial penalties this year to 160 listed companies, two securities houses, 19 investment managers, one individual investment advisor, seven directors and commissioners, two shareholders and three public accountants.

The agency collected a total of Rp 10.83 billion from the penalties, down from the Rp 11.03 billion it collected last year.