ID :
23934
Sat, 10/11/2008 - 14:45
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http://m.oananews.org//node/23934
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KADIN: STOCK TRADING SHOULD REMAIN SUSPENDED UNTIL MARKET CALMS DOWN
Jakarta, Oct. 11 (ANTARA) - The Indonesian Stock Exchange (BEI) should continue to suspend stock share trading until the capital market calms down and the rupiah strengthens, according to an official of the Indonesian Chamber of Commerce and Industry (KADIN).
"Ideally, BEI should resume its trading activities only when the money market calms down and the rupiah strengthens," Bambang Seosatyo, chairman of KADIN's permanent committee for fiscal and monetary affairs, said here on Friday, commenting BEI's decision to again suspend stock trading after it was reopened briefly Friday morning.
He said BEI should have not reopened trading on Friday morning if it was in fact forced to suspend trading again in the middle of its first session.
He said the falling of the Composite Stock Price Index should have been predicted earlier, namely as soon as there were signs foreign investors were withdrawing their funds from BEI.
The fact was that around 60 percent of share portfolios on the Indonesian capital market was in foreign hands, so that foreign capital flight would lead to an instant collapse of the Composite Stock Price Index, he said.
He said the capital market authority had not been accurate and careful enough in calculating various possibilities. while the government even appeared to have panicked because of the world financial turmoil.
"The government has asked the people not to panic, but in fact the government itself became so sensitive and easily panic-stricken," he said.
Meanwhile, the BEI authority was compelled to suspend trading in the bourse's first session again on Friday morning because of a worsening of conditions in global stock markets.
"We were afraid the global turmoil would also drive down the composite price index here," BEI director for trade affairs MS Sembiring said on Friday.
According to BEI President Director Erry Firmansyah, BEI is likely to resume trading activities on Monday (Oct. 13) after the government has prepared the necessary infrastructure.
Trading on the Indonesian Stock Exchange has been suspended since Wednesday (Oct. 8) as the market became irrational causing the main index to plummet more than 10 percent by mid-morning on Wednesday.
"Ideally, BEI should resume its trading activities only when the money market calms down and the rupiah strengthens," Bambang Seosatyo, chairman of KADIN's permanent committee for fiscal and monetary affairs, said here on Friday, commenting BEI's decision to again suspend stock trading after it was reopened briefly Friday morning.
He said BEI should have not reopened trading on Friday morning if it was in fact forced to suspend trading again in the middle of its first session.
He said the falling of the Composite Stock Price Index should have been predicted earlier, namely as soon as there were signs foreign investors were withdrawing their funds from BEI.
The fact was that around 60 percent of share portfolios on the Indonesian capital market was in foreign hands, so that foreign capital flight would lead to an instant collapse of the Composite Stock Price Index, he said.
He said the capital market authority had not been accurate and careful enough in calculating various possibilities. while the government even appeared to have panicked because of the world financial turmoil.
"The government has asked the people not to panic, but in fact the government itself became so sensitive and easily panic-stricken," he said.
Meanwhile, the BEI authority was compelled to suspend trading in the bourse's first session again on Friday morning because of a worsening of conditions in global stock markets.
"We were afraid the global turmoil would also drive down the composite price index here," BEI director for trade affairs MS Sembiring said on Friday.
According to BEI President Director Erry Firmansyah, BEI is likely to resume trading activities on Monday (Oct. 13) after the government has prepared the necessary infrastructure.
Trading on the Indonesian Stock Exchange has been suspended since Wednesday (Oct. 8) as the market became irrational causing the main index to plummet more than 10 percent by mid-morning on Wednesday.
