Jakarta. Indonesia Stock Exchange (IDX) recorded the highest market capitalization (market cap) among other stock exchanges in Asia. Data from Bloomberg show that the Jakarta Composite Index (JCI) scored a 27.50% of market cap rise.

The value of JCI’s market capitalization amounted to US$ 446.41 billion. This value is lower than the ones in China, Japan, Hong Kong, and South Korea. However, JCI’s market cap value is second only to the market cap of Singapore stock exchange that amounted to US$ 476.91 billion.

Director of Investa Saran Mandiri Hans Kwee said that the market cap growth is in line with the increase in index. “At the beginning of the year, JCI stood at the level of 4,500. To date, there is a 17% increase compared with the beginning of the year”, Hans told KONTAN on Sunday (30/10).

The growth of IDX market cap is higher than the growth of JCI during the same period, on the grounds that the number of stocks has increased as the results of initial public offering (IPO) and rights issue.

Director of Avere Investama Teguh Hidayat said that the market cap rise was driven by two factors. First, an 18% increase in JCI, and second, the increase in new shares, which have large capitalization. “The increase in market cap supposed to be in line with the JCI rise. However, this year some large companies conducted corporate actions, while some companies just conducted IPO with a large market cap”, Teguh said.

For an example, PT Waskita Beton Precast Tbk (WSBP) has launched IPO with a large market cap. Furthermore, some large companies, which are as large as state owned enterprises, also launched rights issue so that the value and amount of stocks have boosted the market cap of stock exchange. “If some rights issues complete before the end of the year, the market cap may hit 30%”, Teguh said.

Analyst at Recapital Securities Liga Maradona predicted that IDX may only score slight increase in IDX stock market by the end of the year. Perhaps, IDX will just book a significant increase in the next year. “This year some companies delayed the IPO. Perhaps, next year (IDX) will be more lively”, Liga said.

The free float policy, which was set by the IDX at the beginning of the year at the level of 7.5% may increase the market cap. Yesterday, the IDX market cap reached Rp 5,867 trillion. The highest record of market cap in this year is at the level of Rp 5.87 trillion.

(MUHAMMAD FARID/Translator)

Editor: Adi Wikanto