JSX delays two-board trading system: Daniri

JAKARTA (JP): The Jakarta Stock Exchange (JSX) has delayed the implementation of a two-board trading system originally planned for May 3, the exchange's president Mas Achmad Daniri said on Friday.

He said the planned merger of the JSX and Surabaya Stock Exchange was still underway but the postponement was due to the economic circumstances which caused many listed companies to undergo debt restructuring.

"We want to make sure that those companies complete their restructuring deal, so that any negative impact that may arise from the implementation of the system would not deter their restructuring process," he said.

Daniri said he was confident the postponement would not last beyond 1999.

"It is not that we reject the idea of the two-board system, but we just think it is not good timing to put it in effect now."

Daniri said the two-board system was desirable partly because it provided the exchange with an index composed of a more homogeneous group of companies.

"We have an index for a group of relatively larger companies and another for smaller ones. Or, we can still have an index of a combined one of both groups."

The two-board system with its new listing requirements attached, prepared under the previous exchange management, was approved by the Capital Market Supervisory Agency (Bapepam) on April 14 to take effect in early May. (02)