Kontan Online

MARKET AND STOCK TRADING

Investor growth has yet to boost transactions

Saturday, 18 February 2017 | Elisabet Lisa Listiani Putri

JAKARTA. Slow but sure, the number of investors and traders are continuously growing. The data of Indonesia Stock Exchange (IDX) show, the number of investors has grown to 100,000 investors along the year of 2016.

The IDX revealed that the number of single investor identification (SID) has grown by 23.47% from 434,107 as per the end of 2015 to 535,994 as per the end of 2016. “80% of the additional investors in 2016 came from the age range of 20-40 years old,” said Nicky Hogan, the Director of IDX, Friday (17/2).

Another good news is that the number of active investors has increased by 32.3% to 187,386 as per the end of last year on annual basis. In December 2016, the number of investors grew by 33.76%.

Nicky added, IDX is targeting to increase the number of investors by 110,000 investors by the end of 2017. In other words, IDX is targeting a 20% growth in the number of investors, compared with this period.

Along the year of 2016, domestic investors remained controlling the transactions in the stock market. During the period, the domestic investors booked as much as Rp 2,328 trillion transactions, or 63.11% of the total transactions in the stock market that amounted to Rp 3,688 trillion. Meanwhile, the foreign investors made an amount of Rp 1,360 transactions or 36.89% of the total transactions in the stock market.

On the other hand, the IDX previously targeted to book average daily transactions of Rp 8 trillion in this year. However, the growth in the number of investors would not be sufficient to meet the target. Investment Director of Sucorinvest Asset Management Jemmy Paul said, the transactions value hit Rp 7 trillion in the last year.

In other words, the transaction value has increased by 12%. “However, the retail investors only contributed to 20% of the total transactions. Therefore, the number of retail investors should increase by 25% to increase the transactions to Rp 8 trillion,” Jemmy told KONTAN, Friday (17/2).

He said that the target of increasing the number of investors by 20% would have not significant to boost the daily average transactions in the stock exchange. Furthermore, an 80% growth in investors, which mainly consist of the people at the age range of 20-40 years old, implies that the IDX still needs to educate public, on the grounds that most of them are traders.

Analyst at NH Korindo Securities Bima Setiaji also confirmed that most of the young people more prefer to become the trader, instead of becoming long term investor. Bima added that probably, the number of transactions at the IDX may be increasing if the IDX can attract about 100,000-150,000 new investors.

Bima also estimates that the blue chips shares are still moving to the consolidation zone. During the recent weeks, the increase in transactions took place in the second and third-tier stocks. As the consequence, the value of average daily transactions has just amounted to Rp 6.61 trillion, or much lower than the trading target of Rp 8 trillion, despite the volume of average daily transactions could hit 18.14 billion of stocks per day.

Bima added that the stock exchange authority still needs to increase the protections and educations to the investors, as the new investors or traders usually would be interested in investing funds in penny stocks. In a fundamental manner, the investors, mainly the new investors, need to receive that kind of education. (Muhammad Farid/Translator)

 

Reporter: Elisabet Lisa Listiani Putri
Editor: Sanny Cicilia
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