BEI BEGINS APPLYING NEW SYMMETRICAL AUTO REJECTION SYSTEM

Jakarta, Jan. 19 (ANTARA) - The Indonesian Stock Exchange (BEI) on Monday began applying a symmetrical auto rejection system but would review it if it failed to increase market liquidity, a BEI official said.
"If it has no effect in terms of liquidity improvement, we will review it," MS Sembiring, BEI's director for stock trading, research and business development, said here on Monday.
The new system was mainly aimed at improving the stock market's liquidity which would be reflected in the total volume and value of daily share transactions at BEI, he said.
"Our transaction target this year is Rp2.75 trillion," he said.
The symmetrical auto rejection system being applied as of Monday (Jan. 19) was to replace the previous asymmetrical auto rejection scheme, under which trading in any share was terminated automatically if it jumped by 20 percent or fell by 10 percent in terms of share prices during one trading day.
The new symmetrical pattern has three classifications, namely for shares which price under Rp200, the automatic system termination is 35 percent; for shares with price at between Rp200 and Rp5,000, 25 percent; and shares with price above Rp5,000, 20 percent.