TEMPO.CO, Jakarta - The Indonesia Stock Exchange (IDX) plans to change the stock trading transactions mechanism during the pre-closing session. The IDX aims to make it more transparent, efficient, and fair.

IDX director of trade and membership Alpino Kianjaya said the plan is a response to market players' tendency to place their shares at the lowest price levels, which affects the Jakarta Composite Index's (JCI) rate.

IDX's pre-closing session is from 15:50 to 16:00 pm, in which investors can enter bids and make purchase requests. The system then performs the closing price formation process.

According to Alpino, a lot of undisclosed transaction practices happen during the session, especially for stocks with large market capitalization. This practice is affecting the index.

"As we know, the JCI level is formed by transactions that happen during pre-closing. We're thinking of implementing a new mechanism that will make these transactions become more transparent," he said in Jakarta, Thursday, February 2.

Earlier, IDX president director Tito Sulistio said they will investigate why the JCI tends to weaken towards the close of trading. This is something that has happened a lot recently.

He suspects there are people who intentionally place stocks at a low level. "In the last three months, this has happened quite frequently. It is possible that (the index falls) because of client orders, but why does it happen suddenly? I've told investors to help maintain the market," said Tito.

ANTARA