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Indonesian bourse caps stock drops at 10% as equities start to rebound after bruising day

first_imgTopics : The Indonesia Stock Exchange (IDX) has issued a new regulation that allows stocks, at all price ranges, to fall by a maximum of 10 percent in an effort to anchor the Jakarta Composite Index (JCI) after a deep drop on Monday.The new auto-rejection regulation came into force Tuesday, when stocks rebounded on early trading. The rule stipulates that the bourse will allow stocks with prices ranging from Rp 50 (0.3 US cent) to Rp 200 to rise 35 percent and to fall a maximum of 10 percent.Read also: OJK relaxes buyback rules as Indonesian stocks nosedive more than 6% Stocks with prices of between Rp 200 and Rp 5,000 will be allowed to increase by a maximum of 25 percent and decline by just 10 percent, while equities priced higher than Rp 5,000 will be allowed to jump by a maximum of 20 percent and fall by 10 percent.Previously, the auto-rejection ceiling and floor percentages were set at the same level for each price range.“The Indonesia Stock Exchange’s changes to the auto-rejection limits are intended to ensure orderly, reasonable and efficient equities trading,” the bourse’s statement reads.The JCI, the main gauge, jumped by 0.29 percent at opening on Tuesday and soared a further 2.07 percent to 5,242.94 as of 9:44 a.m. Jakarta time after plunging 6.58 percent on Monday to a three-year low amid virus fears and an oil price war.center_img Read also: Oil crash sparks ‘Black Monday’ meltdown on virus-hit marketsThe Financial Services Authority (OJK) on Monday evening also announced a policy to allow listed companies to buy back their shares without a prior shareholders meeting to ease market volatility.“This is as an effort to stimulate the economy and reduce the impact of the significantly fluctuating market,” the OJK said in a statement. (prm)last_img

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