December 30, 2013 / 4:57 AM / 6 years ago

Indonesia stock exchange to reduce lot sizes to attract investors

JAKARTA, Dec 30 (Reuters) - Indonesia's stock exchange said
on Monday it will reduce trading sizes to 100 shares per lot
from 500 shares starting next week, in an effort to increase
market liquidity and attract more retail investors.
    The bourse will also increase the maximum volume order to
50,000 lots from 10,000 lots, effective Jan. 6.
    The Jakarta Composite index has fallen 2.4 percent
so far this year, making it the worst performing market in
Southeast Asia after Thailand.
    Trade volume has steadily dropped over the last five years
with around 9 billion shares traded per day this year, compared
to 27 billion shares per day in 2009.    
    The exchange is also simplifying the number of categories of
stock prices to three from five. The following table shows the
new categories:    
       
 Stock Price        Price Fraction   Maximum Price Movement
 < 500 rupiah       1 rupiah         20 rupiah
 500 rupiah <       5 rupiah         100 rupiah
 5,000 rupiah                        
 >= 5,000 rupiah    25 rupiah        500 rupiah
 
    Price fraction is the price change unit used in making a
selling or buying bid.
    

 (Reporting by Andjarsari Paramaditha; Editing by Kim Coghill)
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