The Jakarta Post, Jakarta | Fri, 12/31/2010 10:24 AM
The Indonesia Stock Exchange (IDX) looked more like a wedding than a bourse on Thursday, as musicians and dancers mingled with traders and captains of industry on the last trading day of 2010.
Executives and stock market officials alike gathered on the trading floor to celebrate the IDX as the Asia Pacific region’s best-performing stock market in 2010.
As Deputy Finance Minister Anny Ratnawati rang the bell signaling the end of trading, the benchmark Jakarta Composite Index (JCI) stood at 3,703.51. The band played the reggae anthem Welcome to My Paradise to a standing ovation delivered by smiling market players.
And they might well smile: the JCI rose 44 percent in 2010. Indonesian companies raised more than
Rp 100 trillion (US$11.1 billion) on the IDX this year through a multitude of initial public offerings (IPOs) and rights and bonds issuances.
The IDX’s performance helped firms collect funds for expansion, as the market has “overcome the crisis and regained confidence”, as a scrolling sign on the exchange’s trading floor said.
The bourse’s gain was the highest in the Asia-Pacific region and even rivaled major global indexes, IDX president director Ito Warsito said.
Singapore’s Straits Times rose about 10 percent and Malaysia’s KLCI gained about 20 percent in 2010.
“We lost the Asean Football Federation Cup, but we won on the Asian stock market” joked Capital Markets and Financial Institutions Supervisory Agency (Bapepam-LK) chief Fuad Rahmany.
Major global indexes showed modest performances in comparison, with the United States’ Dow Jones and London’s Financial Times both up about 10 percent for the year while Tokyo’s Nikkei was down 3 percent.
Anny said a 21 percent bump might be just around the corner for the IDX in 2011. “It could reach 4,500 in the count of months.” Analysts expect the IDX will close between 4,300 and 4,500 in 2011.
The exchange’s market capitalization and transaction values also showed stellar performance, Anny told more than a hundred executives and analysts on the trading floor.
The IDX’s market capitalization reached Rp 3,247 trillion as of Dec. 30, up 60.82 percent from Rp 2,534.36 trillion on 2009’s final trading day. Twenty-two IPOs helped boost the IDX’s market capitalization.
An expected 25 IPOs in 2011 would increase market capitalization at least 20 to 25 percent to about Rp 4,000 trillion, according to the IDX.
“It’s good that firms can collect funds from the stock market. They will use it for business expansion and therefore support the nation’s economic growth,” Anny said.
With strong lending growth and higher commodity prices, banks and commodity firms showed significant gains this year.
Shares in state-owned Bank Rakyat Indonesia (BBRI) climbed 37 percent, Bank Mandiri shares (BMRI) were up 38 percent and Bank Central Asia shares (BBCA) up 32 percent in 2010.
Shares of Indo Tambangraya (ITMG) climbed nearly 60 percent, Adaro Energy shares (ADRO) gained 47 percent and Tambang Batubara Bukit Asam shares (PTBA) were up 33 percent.
“The government is very pleased with the stock market’s performance this year and therefore appreciates all the nation’s market players,” Anny said. (est)
The Indonesia Stock Exchange (IDX) looked more like a wedding than a bourse on Thursday, as musicians and dancers mingled with traders and captains of industry on the last trading day of 2010.
Executives and stock market officials alike gathered on the trading floor to celebrate the IDX as the Asia Pacific region’s best-performing stock market in 2010.
As Deputy Finance Minister Anny Ratnawati rang the bell signaling the end of trading, the benchmark Jakarta Composite Index (JCI) stood at 3,703.51. The band played the reggae anthem Welcome to My Paradise to a standing ovation delivered by smiling market players.
And they might well smile: the JCI rose 44 percent in 2010. Indonesian companies raised more than
Rp 100 trillion (US$11.1 billion) on the IDX this year through a multitude of initial public offerings (IPOs) and rights and bonds issuances.
The IDX’s performance helped firms collect funds for expansion, as the market has “overcome the crisis and regained confidence”, as a scrolling sign on the exchange’s trading floor said.
The bourse’s gain was the highest in the Asia-Pacific region and even rivaled major global indexes, IDX president director Ito Warsito said.
Singapore’s Straits Times rose about 10 percent and Malaysia’s KLCI gained about 20 percent in 2010.
“We lost the Asean Football Federation Cup, but we won on the Asian stock market” joked Capital Markets and Financial Institutions Supervisory Agency (Bapepam-LK) chief Fuad Rahmany.
Major global indexes showed modest performances in comparison, with the United States’ Dow Jones and London’s Financial Times both up about 10 percent for the year while Tokyo’s Nikkei was down 3 percent.
Anny said a 21 percent bump might be just around the corner for the IDX in 2011. “It could reach 4,500 in the count of months.” Analysts expect the IDX will close between 4,300 and 4,500 in 2011.
The exchange’s market capitalization and transaction values also showed stellar performance, Anny told more than a hundred executives and analysts on the trading floor.
The IDX’s market capitalization reached Rp 3,247 trillion as of Dec. 30, up 60.82 percent from Rp 2,534.36 trillion on 2009’s final trading day. Twenty-two IPOs helped boost the IDX’s market capitalization.
An expected 25 IPOs in 2011 would increase market capitalization at least 20 to 25 percent to about Rp 4,000 trillion, according to the IDX.
“It’s good that firms can collect funds from the stock market. They will use it for business expansion and therefore support the nation’s economic growth,” Anny said.
With strong lending growth and higher commodity prices, banks and commodity firms showed significant gains this year.
Shares in state-owned Bank Rakyat Indonesia (BBRI) climbed 37 percent, Bank Mandiri shares (BMRI) were up 38 percent and Bank Central Asia shares (BBCA) up 32 percent in 2010.
Shares of Indo Tambangraya (ITMG) climbed nearly 60 percent, Adaro Energy shares (ADRO) gained 47 percent and Tambang Batubara Bukit Asam shares (PTBA) were up 33 percent.
“The government is very pleased with the stock market’s performance this year and therefore appreciates all the nation’s market players,” Anny said. (est)
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