Trading hours to start earlier to boost transactions

JAKARTA: Indonesia Stock Exchange (IDX) is reviewing the possibility to start bourse transaction earlier at 09.00 a.m. from currently at 9.30 a.m., aiming to elevate the stock trading volume.President Director IDX Ito Warsito said that he is preparing the scheme of early bourse transaction, increasing the trading hours to 6 hours from 5.5 hours.He also disclosed that the plan is in line with President Susilo Bambang Yudhoyonos recent proposal saying that trading hours in Indonesia are considered to few.We hope that the adjustment of the market opening hour can be implemented in 2011. Thus, we are preparing the system and human resources. Besides, we will also ask for approval from the Capital Market and Financial Institutions Supervisory Agency, Ito said.Moreover, Ito thought that the purpose of the plan is to adjust the Indonesian trading hours with those of Singapore and Hong Kong, minimizing the influences coming from those regional markets.Head of Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) A. Fuad Rahmany responded positively to the plan. Its mere a plan, it needs coordination among several parties, including the government. I am under supervision of Ministry of Finance, so we need coordination. But the main purpose is good, Fuad said.President Yudhoyono also hoped that the performance of Indonesias stock exchange will be better this year, after posting an impressive and great achievement in 2010.The Head of State said that the great achievement in the bourse could be proven from the increasing number of listed companies and higher capitalization value. The President also said that IDX was the best stock exchange in Asia Pacific.Remote TradingAt the same time, Ito explained the reconstruction of floor trading after remote trading commenced in 2002. Since 2005, remote trading has been fully operating so there are left only 20 seats in use of 444 seats available at the trading room.Now, the trading room is no longer in use since all bourse members apply remote trading and the facility will be renovated into office room, museum, and meeting room.Director of Market Trading and Membership Management at IDX Wan Wei Yiong said that he will discuss and explain the plan with the Association of Indonesian Stock Companies. (T04/NOM)