Jakarta Post

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post
press enter to search

The Jakarta Post
Video Weather icon 26°C
DKI Jakarta, Indonesia
26°C Light Rain

Rain until tomorrow morning, starting again tomorrow afternoon.

  • Thu

    26℃ - 31℃

  • Fri

    26℃ - 32℃

  • Sat

    27℃ - 32℃

  • Sun

    26℃ - 30℃

IDX will start trading day earlier in January

  • The Jakarta Post

| Fri, November 2 2012 | 10:55 am

The Indonesia Stock Exchange (IDX) has obtained approval from the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) for its plan to start stock trading earlier and to implement a pre-closing and post-closing mechanism.

“The decree has been signed by the Bapepam-LK head,” Bapepam-LK chief for transactions and securities firms Yunita Linda Sari said on Thursday.

Under the new regulation, the IDX will start trading 30 minutes earlier with the opening bell now ringing at 9 a.m. The new hours aim to reduce the gap between IDX’s trading hours and other stock exchanges in Asia.

Neighboring countries’ stock exchanges such as Singapore Exchange (SGX) and Bursa Malaysia (MYX) begin trading at 9 a.m. local time (8 a.m. Jakarta time).

Tokyo Stock Exchange (TSE) launches daily trading at 9 a.m. local time (7 a.m. Jakarta time) while the Hong Kong Stock Exchange (HKEX) and the Shanghai Stock Exchange (SSE) start stock trading at 9:20 a.m. and 9:30 a.m. respectively (8:20 a.m. and 8:30 a.m. Jakarta time).

“We will no longer start trading far after other bourse and fundamental objectivity will be the main reason for investors to enter or exit the market,” IDX director of trading and membership Samsul Hidayat said.

Adding that the longer trading hours could also increase liquidity as well as attract more investors from central and eastern parts of the country.

About 95 percent of domestic investors, according to Samsul, are Jakarta based people and institutions. The remaining 5 percent come from other parts of the country.

Bapepam-LK’s decree also approves the bourse’s proposal to implement a pre-closing and post-closing period mechanism.

Samsul said that by having a pre-closing period, the bourse would prevent the price manipulation that often took place at the end of the trading.

“This is part of a continuing effort to improve the bourse’s supervision,” he said. Under the regulation the pre-closing period will be from 3:55 p.m. to 4:00 p.m. and the post-closing period will be from 4:00 p.m. to 4:15 p.m.

—JP/Raras Cahyafitri

TRY A DIGITAL SUBSCRIPTION

Join the discussions