Indonesian financial market keep sagging amid the various negative news from global and domestic - Photo: Special

JAKARTA (TheInsiderStories) – Indonesian financial market keep sagging amid the various negative news from global and domestic. In early transaction on Thursday, the Rupiah has touched the level in 1998′ crisis around 16,000 versus the US Dollar.

The local currency now at 15,400 at 10.32 a.m. eastern time, dropped 200 points compared to yesterday. The worse level showed at the middle rate of Bank Indonesia, this morning the JISDOR has touched the level 15,700 over the Greenback.

While, Indonesia Stock Exchange (IDX) halt the stock transactions again after the Jakarta Composite Index (JCI) down 5 percent to 4,108,911. Year to date, the stock index has decreased by 31.25 percent.

Based on the regulator rule, the trading will halt for 30 minutes 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. Earlier, 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.

The official data showed, throughout the year the index has fell 13.44 percent. According to IDX, the decline in the last week of February was the biggest contributor to the decline in the in the global major exchanges and ASEAN.

While, Financial Services Authority (FSA) allowed listed companies to buyback shares up to 20 percent of their paid-up capital without need a shareholders approval. The new policy has been taken in an effort to ease market volatility and provide the stimulus to the market.

by Linda Silaen, Email: linda.silaen@theinsiderstories.com