JSX delays two-board trading system: Daniri

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)