JSX revises share price spread

JAKARTA (JP): The Jakarta Stock Exchange (JSX) announced on Tuesday that as of Oct. 20, 2000 it would replace the current maximum bid/offer price spread from the current single fraction to a multi-fraction.

Under the multi-fraction policy, share prices of below Rp 500 (5.68 U.S. cents) will have a fraction of Rp 5 with a maximum bid/offer price spread of Rp 50.

Share prices of between Rp 500 to Rp 5,000 will have a fraction of Rp 25 with a maximum bid/offer price spread of Rp 250.

Whereas share prices of Rp 5,000 and above will have a fraction of Rp 50 with a maximum bid/offer price spread of Rp 500.

The JSX said it was converting to the multi-fraction policy to adapt to the increasing influence of external factors in the local capital market.

"In a bearish market situation, this adjustment will have the important impact of reducing market volatility and increasing trade liquidity," the exchange said. (bkm)