KONTAN.CO.ID - JAKARTA. The Indonesia Stock Exchange’s (IDX) free-float methodology to be introduced on Feb. 1 is expected to encourage listed companies to increase the number of shares available for the public, securities firm Investa Saran Mandiri stock exchange analyst Hans Kwee has said. He also said with the new methodology, the amount of the free-float shares of each listed company would determine the weighting of their share index and if the percentage of their free-float shares was small, the weighting on the index would also be small. “So, the new method will encourage share issuers to increase the number of their free-float shares so that their share prices would reflect real market conditions,” he told The Jakarta Post recently.
IDX's new calculation reflects fairer value of shares
KONTAN.CO.ID - JAKARTA. The Indonesia Stock Exchange’s (IDX) free-float methodology to be introduced on Feb. 1 is expected to encourage listed companies to increase the number of shares available for the public, securities firm Investa Saran Mandiri stock exchange analyst Hans Kwee has said. He also said with the new methodology, the amount of the free-float shares of each listed company would determine the weighting of their share index and if the percentage of their free-float shares was small, the weighting on the index would also be small. “So, the new method will encourage share issuers to increase the number of their free-float shares so that their share prices would reflect real market conditions,” he told The Jakarta Post recently.