TEMPO.CO, Jakarta - The Indonesian Stock Exchange (IDX) and the Financial Services Authority (OJK) are coordinating to anticipate for the Jakarta Composite Index's (JCI) constant declines over the past few months.
IDX director Samsul Hidayat said that the bourse authority continues to monitor the domestic stock market movement while conducting crisis management protocol/CMP.
"The OJK and us are discussing what steps we need to take in accordance with applicable regulations," he said as quoted by Antara in Jakarta, yesterday.
According to Samsul, the authority has indicators and steps that can be done when the market is on turmoil. Regulations allow issuers or public companies to buy back shares; a policy expected to help prevent the index from plunging deeper.
OJK chairman Muliaman Hadad said the regulator is also monitoring the stock market as the JCI is moving towards its bottom low. Hadad asked investors to remain calm yet alert.
The JCI yesterday fell 3.97 percent to 4163 bps, or lost 19.1 percent compared to Aug. 24, 2014. Twenty nine stocks experienced price gains, 276 saw prices down, while 188 stocks were not traded.
Yesterday's trade saw a transaction total of Rp5.72 trillion. "In the regular market, foreign investors recorded a net sell of Rp503 billion," said Fath Aliansyah Budiman, VP for stock market equities at PT Mandiri Sekuritas.
Yesterday's biggest losers were stocks from the basic industry sector with a 7.68 percent decline, followed by the plantations sector with 6.79 percent correction.
As of yesterday, a number of issuers had announced buyback plans to keep stock prices from declining further. Some of these issuers are PT Bank Negara Indonesia (Persero) Tbk (BBNI), PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), and PT Wijaya Karya Beton Tbk (WTON).
ADITYA BUDIMAN | MEGEL JEKSON