Surabaya bourse profits plunge in 1996

Surabaya bourse profits plunge in 1996

JAKARTA (JP): Lower trading activity on the Surabaya Stock
Exchange has slashed the bourse's profits to Rp 10 million
(US$4,250) this year, down from Rp 1.76 billion last year, an
executive from the bourse said.

Syahril Madjidi, a director of the East Java-based stock
market, said that the daily average trade value fell to Rp 16.59
billion from Rp 21.36 billion last year.

He predicted that the bourse's revenues would drop to Rp 4.1
trillion (US$1.73 billion) this year from Rp 5.25 trillion last
year as a result of the decline in the bourse's transaction
activities.

Trade activity was slow and only recovered after the bourse
launched a new trading system called Surabaya-Market Information
Remote Trading (S-Mart) in early October, said Syahril.

Trade activity at the bourse then grew 22.07 percent, trade
volume 112.23 percent and trade value 120.34 percent.

He said the bourse would soon install new trading facilities
to boost transactions in the regular market next year. He said
that at present regular market trading could not be carried out
continuously as it is done on the Jakarta Stock Exchange.

"At present, there is a time interval from one transaction to
another," he was quoted as saying by Antara.

With a continuous regular market, the bourse expects its
profit to increase to Rp 200 million next year. He said the
bourse is still waiting for the new system to be approved by the
Capital Market Supervisory Agency (Bapepam).

Like the JSX, the Surabaya bourse has four kinds of trading
activities; regular trading, bloc trading, cross trading and odd-
lot trading boards. Trading activities in the regular market are
not as active as those on the bloc and cross trading boards.

Another bourse director, Anton Natakoesoemah, said the bourse
recently signed an agreement with the American Nasdaq
International Market Initiative for technical and management
assistance.

"We hope technical assistance from Nasdaq will help us boost
trading," he said.

The SSE was established in 1989 as the first privately owned
stock market in the country and the only stock market located
outside Jakarta.

Its earlier operation relied heavily on the government's
listing policy, requiring share issuers to list their shares on
both the Jakarta and Surabaya markets.

At present most companies listed on the Jakarta Stock Exchange
are still required to maintain their cross listings.

He said about 10 companies would list their shares on the
bourse next year.

A total of 67 companies issued Rp 8.43 trillion worth of bonds
on the bourse. Bonds worth Rp 4 trillion are expected to be
issued next year.

Two companies, Surya Toto and Suba, delisted this year because
their shares were rarely traded, he said. (jsk)