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)