SSE to introduce new system to boost trade

JAKARTA (JP): The Surabaya Stock Exchange (SSE) will introduce a new trading system today to boost trade.

SSE's president, Isakayoga, said yesterday the new trading system, called continuous auction, would enable dealers to trade directly through on-line computer terminals installed in brokerage firms.

"Trade in the current system cannot be carried out continuously. Under the existing periodical system, one also needs a long time to have the latest information about trading activities like share prices and buy and sale orders," he said.

Isakayoga said the new system would also enable investors to directly place their orders through their brokerage companies' computers.

The continuous auction system will be carried out through the exchange's Surabaya Market Information and Automated Remote Trading (S-MART) terminals.

The SSE has 93 S-MART terminals, 70 of which are installed in brokerage firms' offices and the remainder in the SSE's headquarters and its Jakarta branch office.

Isakayoga said the aim of the new facility was to increase and improve trade on the SSE. "So far, market enthusiasm is very small," he said.

Trade is categorically inactive as investors prefer to buy stocks through the Jakarta Stock Exchange. Most companies listed on the Surbaya stock market are also traded on the JSX.

Isakayoga said the introduction of the continuous auction system was part of SSE's program to have scriptless trading by the end the year in cooperation with the U.S. Nasdaq.

SSE has invested about Rp 1 billion (US$420.16) on the project.

There are 118 companies listed on the SSE and most are also listed on the JSX. Only a few listed on the SSE exclusively.

Siloam Gleneagles, a hospital firm affiliated to Lippo Group, is currently offering shares for its listing exclusively on the SSE.

He said the SSE expected more companies to list only on the SSE.

"There will be five new single listing companies," he said but did not say which companies they were. (09/nur)