Jakarta, CNBC Indonesia – The movement of the Composite Stock Price Index (JCI) is like a roller coaster. After continuing in an upward trend, the index actually collapsed after the end of the Eid al-Fitr holiday.
Until the close of trading Monday (9/5/2022), the JCI was observed to have fallen by 4.42% at the level of 6,909.75. JCI was forced to collapse below the psychological level of 7,000 in today’s trading.
Even now the JCI is near the psychological level of 6,900. Along with the decline in the JCI, foreign investors net sell jumbo of Rp 2.6 trillion.
Not only that, the decline was quite critical. The reason is, about 0.58% again until finally the stock exchange trading was temporarily suspended. This is related to the trading halt policy implemented by the Indonesian Stock Exchange (IDX) authority.
“There will be a trading halt for 30 minutes if the index drops to 5 percent,” said Laksono Widodo, Director of the IDX, Monday (9/5/2022).
The trading halt deadline is the implementation of the Decree of the Board of Directors of the Indonesia Stock Exchange Number: Kep-00024/BEI/03-2020 dated March 10, 2020 regarding Changes in the Guidelines for Handling Continuity of Trading on the Indonesia Stock Exchange in Emergency Conditions issued March 10, 2020.
In the existing rules, the trading halt is divided into three sessions. First, a trading halt is performed for 30 minutes if the index drops 5%.
Second, the same deadline is repeated if the index drops 10%. If the drop reaches 15%, the entire trade is suspended.
The temporary suspension of stock exchange activities has been carried out several times in Indonesia. One of the trading halts occurred in 2020 when the Covid-19 first hit.
At that time, the JCI, which started 2020 at the level of 6,300, finally left the level of 6,000 at the end of January and plunged to the level of 3,937.63 on March 24, 2020. This figure was the lowest since at least June 4, 2012 when the JCI closed at 3,654.58.
Since March 2020, to contain the decline in the domestic stock market, the IDX has issued various relaxations, such as the prohibition of short selling transactions, changes to the auto rejection limit to the pre-opening mechanism, to the imposition of a temporary trading suspension/freezing policy for 30 minutes or a trading halt if the JCI drops 5%. in a day.
This temporary suspension of trading is carried out in accordance with the Decree of the Board of Directors of the Indonesia Stock Exchange Number: Kep-00024/BEI/03-2020 dated March 10, 2020 regarding Changes in the Guidelines for Handling Continuity of Trading on the Indonesia Stock Exchange in an Emergency Condition.
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