President Director of BEI Ito Warsito said here on Tuesday that the increase in the market capitalization was achieved in line with increase in the stocks composite index (IHSG) since late last year.
He said that there were several indicators which generated the market capitalization, including the fact where the ratio of the gross domestic products (GDP) had reached Rp700 million.
The other indicator is that the position of Indonesia has a rating of BB+ by the international S&P rating firm, a rate which was one level below countries appropriate as investment destinations.
"The increase in the market capitalization could be reached because of the two indicators," he said.
This could happen, he said, because Indonesia`s economic growth was expected to remain high in the future. The increase in the market capitalization was also supported by the growth of issuers and investors in the BEI and Indonesia`s economic growth.
"BEI will continue to increase the number of foreign and domestic investors," the BEI president director said.
Ito said that the number of investors was also expected to increase as it would also be supported by the mechanism of stock trading which had also been declared `halal` or allowed by the Islamic law, by the National Syariah Council (DSN).
Investors so far have been in doubts to enter the stock exchange but with the `halal` fatwa (religious admonition), there would be no more doubts among investors.
In the meantime, he said, the value of daily transactions at the BEI reached Rp5.48 trillion, which had increased from that at the end of last year which stood at Rp4.8 trillion.
The increase in the value of trade transactions at the stock exchange market showed that the capital market situation in the country was now in the positive trend.
(Uu.A014/HAJM/B003)
Editor: Priyambodo RH
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