JAKARTA (TheInsiderStories) — Year 2018 seems to not have been a good year for the local stock market, mainly due to the uncertainties of the global economy. At the end of this year, The Jakarta Composite Index (JCI) closed at 6,194.5. It fell 2.53 percent from 6,355.65 at the end of last year.
Larger foreign funding also exited the Indonesian market. At the end of 2018, foreign net sells swelled to almost double, from Rp29.135 trillion (US$2.01 billion) last year.
This is the worst end-of-year market close since 2016. Even so, the Indonesian stock market slump is not as bad as other countries in the region.
During 2018, the Indonesian Stock Exchange (IDX) hit a new record on new initial public offerings (IPO) at 57 companies. Funding collected from IPO’s reached Rp16.01 trillion. In total, there are 619 companies listed on the Indonesian Stock Exchange.
“It’s the highest record since (Indonesia Stock Exchange) privatization in 1992,” said President Director of IDX, Inarno Djajadi at the closing ceremony last week at the bourse.
Even though the IPO number exceeded this year’s target, the Indonesian Stock Exchange only seeks moderate target of IPO with only 35 companies next year. According to an official, there have been 45 companies in the IPO pipeline for 2019.
This year, the stock market had a 35 percent increase in new investors and there are 851,903 investors in the stock exchange. During 2018, Indonesian Securities Exchange Transaction Clearing established e-CLEARS system, an acceleration of transaction settlement system from T+3 to T+2, in November.
The regulation made to boost transaction value. But it seems that the arrangement wasn’t effective enough to add liquidity to stock transactions.
Average daily transactions were stagnant at around Rp8.5 trillion. It was also not in accordance with the investors number increase. Authority, however, claimed the daily transaction number is the highest among other Asian regional markets.
Moreover, the e-CLEARS also created intraday facility from banking. Authority has intraday facility agreements with 5 banks with daily loan limit to Rp6.5 trillion. Until Dec. 27, Rp243.69 trillion intraday facility has been used with Rp1.011 trillion daily average, said the President Director Sunandar.
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