SSX ups profit target on robust bond market
Evi Mariani, The Jakarta Post, Jakarta
Cashing in on the vigorous bond market this year, the Surabaya Stock Exchange (SSX) in East Java has gained a healthy net profit during the first semester, which saw about 25 bond issuances worth more than Rp 7.72 trillion (about US$941 million).
SSX president Hindarmojo Hinuri told reporters that the unaudited net profit during the first semester reached Rp 617 million, compared to Rp 962 million in net losses in the same period last year.
Hindarmojo said that about 25 other bond issuances were expected to be listed on the exchange during the next semester.
"Every July is the peak season, when we list bond issuances almost everyday. I believe more than 12 (bond) issues have been listed this month and another 15 issues worth about Rp 4 trillion to 5 trillion will be listed during August to December," he said, without mentioning the value of bonds listed in July.
However, according to the SSX website, from July 1 to July 14, the secondary bond market has already listed twelve bond issues worth more than Rp 5.6 trillion. PT Maspion, PT Serasi Auto Raya, Bank Jatim, Bank BNI and Bank Bukopin were among the companies listing their bonds in July.
The vibrant bond market has allowed SSX to revise upward its 2003 net profit target eleven times from an initial projection of Rp 84 million to Rp 1.01 billion.
Last year, the SSX posted a bleak financial report, suffering Rp 4.26 billion in net losses. The 2002 loss prompted the SSX to set a modest target for its 2003 net profit.
"The vigorous bond market has surprised us. I really hope we can achieve our new target," said Hindarmojo, assuming the bond market would be as strong as the previous semester.
He expected garment giant PT Great River Indonesia, state- owned electricity company PLN, mining company PT Arutmin and food titan PT Indofood Sukses Makmur to list their bond issues, with a combined value of about Rp 2.5 trillion, during the remaining period of the year.
The SSX said that more than 90 percent of its operating revenue came from fees obtained from bond trading activities.
From January to June this year, average daily transactions on government bonds on the SSX reached Rp 1.12 trillion, while the average transaction of corporate bonds reached Rp 39.78 billion a day.