Employees pass a screen displaying stock movements at the Indonesia Stock Exchange building in Jakarta on March 2, 2020. (Photo: Antara)Jakarta (VNA) – The Indonesia Stock Exchange (IDX) will shortentrading hours, starting March 30, as one among measures to reduce marketvolatility caused by the COVID-19 pandemic.
This is the first time in history that the IDX has made sucha move. It has suspended trading for a few days, but it has never shortened thetrading hours before.
In its announcement, the Financial Services Authority (OJK)said that stock trading hours will be shortened to four hours fromfive-and-a-half hours previously. The bourse will open from 9:00 – 11:30 and13:30 – 15:00.
The statement stressed that the move aims to support theGovernment’s efforts to curb the spread of the pandemic and to harmonise policiesof the financial services sector.
The OJK also limited the over-the-counter bond trading(SPPA) period from 9:00 to 15:00 and the securities reporting period from 9:30to 15:30.
It has also asked the Indonesian Clearing and GuaranteeCorporation (KPEI) and the Indonesian Central Securities Depository (KSEI) toadjust the settlement process period and other operational activities.
The OJK said the new policy was in line with changes in theschedule for operational activities and public services at Bank Indonesia, thecountry's central bank.
The IDX's new opening times will last until the OJK lifts the restrictions.
Indonesia's stock market has endured huge hits from theCOVID-19 pandemic, which pushed foreign investors into panic selling.
The Jakarta Composite Index has dived more than 31.1 percentthis year, its worst performance since the global financial crisis in 2008./.
VNA
