JAKARTA (TheInsiderStories) – The state own enterprises (SOE) ministry ordered 12 state firms to buyback shares to curb the stock market falling further, local media reported today (03/10). On Monday, the Jakarta Composite Index plunged 6.8 percent to 5,136.81.
At the same day, Financial Services Authority (FSA) allowed listed companies to buyback shares up to 20 percent of their paid-up capital without need a shareholders approval, said the agency on Monday (03/09). The new policy has been taken in an effort to ease market volatility and provide the stimulus to the market.
The SOEs allocated Rp7 trillion (US$500 million) for the buyback program. The companies are PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Tabungan Negara Tbk (IDA: BBTN), and PT Wijaya Karya Tbk (IDX: WIKA).
PT Adhi Karya Tbk (IDX: ADHI), PT PP Tbk (IDX: PTPP), PT Jasa Marga Tbk (IDX: JSMR), PT Waskita Karya Tbk (IDX: WSKT), PT Aneka Tambang Tbk (IDX: ANTM), PT Bukit Asam Tbk (IDX: PTBA), and PT Timah Tbk (IDX: TINS).
After the decision the stock index rebounded 1.64 percent to 5,220.83 compared to prior day. The market also Earlier, Indonesia Stock Exchange (IDX) also changed the auto rejection limitation help the stock market from coronavirus outbreak and oil price war effects.
Based the official statement, the regulator stated, taking the policy to stabilize the shares trading and in order to ensure regular, fair and efficient Securities trading. The IDX regulated the selling offer price or buying demand for shares entered into Jakarta Automatic Trading System more than 35 percent above or 10 percent below for the reference price of stock with value of Rp50 up to Rp200.
Then, more than 25 percent above or 10 percent below the reference price for shares with a price range of more than Rp200 to Rp5,000 a share. And, more than 20 percent above or 10 percent below the reference price for shares with a price above Rp5,000 each.
The provisions are effective starting March 10, until the deadline to be determined later. Previously, the IDX revoked all short selling transaction in the stock market followed the drowned of the JCI. It said, the short selling transactions ban will implemented until to the deadline to be determined later.
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