JAKARTA (TheInsiderStories) — Indonesia Stock Exchange (IDX) released a new reference index on Monday (01/21), called IDX80. It contains 80 most market-liquid shares in the Jakarta Composite Index (JCI). The calculation of IDX80 is based on free-float ratio to market capitalisation.
Some stocks with the biggest free-float in the index are PT Matahari Department Store Tbk (IDX: LPPF) with 82.51 percent, PT Surya Semesta Internusa Tbk (IDX: SSIA) with 73.87 percent, PT Ciputra Development Tbk (IDX: CTRA) with 52.66 percent, PT Sarana Menara Nusantara Tbk (IDX: TOWR) with 49.95 percent, and PT Adaro Energy Tbk (IDX: ADRO) with 49.91 percent.
According to the official statement, the recent IDX80 stocks will be applied until July 2019. While the stocks calculation is based on February-April period of time.
There are three stages of IDX80 stocks calculation. First, IDX filtrates JCI constituent stocks that have been recorded for more than six months. Second, among those, 150 stocks are selected based on transaction value in regular market for the last 12 months.
Third, the self regulation organization chooses 80 stocks by considering the stocks liquidity, transaction value, transaction frequency, active trading days, free-float shares, and market capitalisation. Not only that, company’s financial performance and compliance are also made the consideration.
The local stock exchange aims to encourage investment increase in the market from the new index. So far, stocks daily average trade seems moving stagnant.
The year-to-date daily average volume recorded at 12.65 trillion shares, daily average frequency at 459.245 times, daily average value at Rp8.87 trillion (US$629.08 million), and market capitalisation was at Rp7.31 trillion.
By the new index, IDX now has three indices, IDX30, LQ45, and IDX80. Later, the IDX30 and LQ45 will also be calculated by free-float shares.
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