Rule on margin trading

JAKARTA (JP): The Jakarta Stock Exchange (JSX) plans to issue a margin trading ruling at the end of this year to prepare for the introduction of such transaction activities, says the exchange's president, Hasan Zein Machmud.

"The ruling is under preparation and we hope it will be issued before the end of the year," he said yesterday.

He said that margin trading, a transaction which allows investors to borrow money or stocks from brokerage companies in trading activities, will theoretically boost trading activities.

But he doubted that the introduction of margin trading on the local stock market would have an immediate impact.

"In a reality it will be difficult to predict if margin trading will revitalize the market because investors also need time to adjust themselves to a new development." he explained.(hen)