ID :
23319
Wed, 10/08/2008 - 21:48
Auther :
Shortlink :
http://m.oananews.org//node/23319
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JAKARTA STOCK EXCHANGE TRADING SUSPENDED TEMPORARILY
Jakarta, Oct 8 (ANTARA) - The Indonesian bourse authority on Wednesday morning decided to suspend share trading at the Jakarta Stock Exchange (JSE) until the second session on the same day but was still considering whether or not to do likewise on Thursday.
"After consulting the Capital Market and Financial Institution Supervisory Board (Bapepam-LK) and the finance minister we decided to suspend trading at the Indonesian Stock Exchange until the second session on Wednesday," JSE's president director, Erry Firmansyah, said.
He said the JSE would continue consulting with the Bapepam-LK and the finance minister on whether or not trading would be opened on Thursday.
"We will see developments in the regional markets which have also slumped today," he said.
The JSE announced the suspension of share and derivatives trading across the market at 11.06am following a significant drop in the share index, closed at 1,451,669 points.
He said the share market was no longer rational with the index falling more than 10 percent in the first session and transactions valued below Rp1 trillion.
"This is not rational and therefore the JSE decided to suspend trading," he said.
The JSE saw the market panicking and investors had already taken irrational steps. He said the Japanese Nikkei also dropped and so did the Singapore stock market. "So if the situation was not controlled it would worsen the Indonesian share market condition and that is why we decided to suspend the trading," he said.
Erry denied that he had been late in making the decision. "We cannot just do it. We have standard operating procedures for it," he said.
Erry called on investors to act rationally and with clear minds with regard to current global financial crisis because if they acted irrationally they would only create more panic in the market that would hurt all parties.
He said investors must not be provoked by negative rumours in the current uncertainty. "They must trust the country's economic fundamentals which are not problematic," he said.
"The decline of the JSE index in the past few weeks was driven more by negative sentiment rather than economic fundamentals," he said.
"After consulting the Capital Market and Financial Institution Supervisory Board (Bapepam-LK) and the finance minister we decided to suspend trading at the Indonesian Stock Exchange until the second session on Wednesday," JSE's president director, Erry Firmansyah, said.
He said the JSE would continue consulting with the Bapepam-LK and the finance minister on whether or not trading would be opened on Thursday.
"We will see developments in the regional markets which have also slumped today," he said.
The JSE announced the suspension of share and derivatives trading across the market at 11.06am following a significant drop in the share index, closed at 1,451,669 points.
He said the share market was no longer rational with the index falling more than 10 percent in the first session and transactions valued below Rp1 trillion.
"This is not rational and therefore the JSE decided to suspend trading," he said.
The JSE saw the market panicking and investors had already taken irrational steps. He said the Japanese Nikkei also dropped and so did the Singapore stock market. "So if the situation was not controlled it would worsen the Indonesian share market condition and that is why we decided to suspend the trading," he said.
Erry denied that he had been late in making the decision. "We cannot just do it. We have standard operating procedures for it," he said.
Erry called on investors to act rationally and with clear minds with regard to current global financial crisis because if they acted irrationally they would only create more panic in the market that would hurt all parties.
He said investors must not be provoked by negative rumours in the current uncertainty. "They must trust the country's economic fundamentals which are not problematic," he said.
"The decline of the JSE index in the past few weeks was driven more by negative sentiment rather than economic fundamentals," he said.
