Asia’s Best Performing Market

Posted on August 14th, 2009 at 2:40 am by Akhyari


The Jakarta Composite Index’s 67 percent gain this year makes the Indonesia Stock Exchange, which is celebrating its 32nd anniversary this week, the third best-performing bourse in Asia, the capital market watchdog said on Wednesday. Two Chinese bourses, the Shenzhen and Shanghai markets, ranked first and second with gains of 93 percent and 74 percent, respectively, according to Bloomberg.

The Taiwanese and Philippine markets ranked fourth and fifth in the region this year, gaining 47 percent and 45 percent, respectively. Indonesia’s IDX capitalization increased from $115.4 billion on Jan. 5 to $188 billion on Aug. 11.

The gains in the index and the increased market capitalization underscored the revival of investor confidence since last year’s crash. While stock transactions totaled  $60 billion from Jan. 5 to Aug. 11, with $ 390 million in average daily transactions.  Daily transactions so far this month have reached $700 million, which is a very attractive level of trading.

The average daily trading frequency rose 44 percent to 85,000 daily transactions this year, while average trading volume rose 94 percent to 3.3 billion shares. The increase in trading volume and frequency was supported by the increase in the number of retail investors who traded stocks online.

Foreign investors still dominated the market, holding 66 percent of the capital value, up from 64 percent last year. While local investors dominated trading of corporate and Islamic bonds, accounting for 97 percent of the total of 78 trillion transactions, up from 76 percent in 2008.

The IDX has been targeting to have at least two million investors by 2012. China is said to have recently attracted two million new investors in just one month.

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