Director of Development at BEI Friderica Widyasari Dewi revealed BEI wanted to develop the Jakarta Islamic Index (JII) to not only cover 30 blue-chip Islamic stocks.
She revealed BEI had found many potential investors showing huge interests in Islamic securities instruments. From January-September 2010, JII grew by 26.21%.
"Every time I am on the road show to regions, many potential investors ask about Islamic stocks. So far, what they know is there are only 30 Islamic stocks. Actually, there are more Islamic stocks," she informed yesterday.
JII, which has been around for ten years, is an index containing 30 stocks recording the largest transaction values over the past year. The 30 stocks are selected out of 60 stocks based on their caps. In the meantime, there are 198 Islamic stocks in total.
Of the 30 stocks, she disclosed that the five most frequently traded Islamic stocks are PT Astra International Tbk, PT Telekomunikasi Indonesia Tbk, PT United Tractors Tbk, PT Semen Gresik Tbk and PT Indocement Tunggal Prakarsa Tbk.
Although the plan was still in a form of discourse, Friderica disclosed the grouping of Islamic stocks into one index was expected to create a benchmark for market players and potential investors to more actively make investments in the capital market.
"All this time, the Composite Stock Index [IHSG] and the LQ-45 indices have been benchmark indices for the overseas markets that are eyeing our capital market."
She added the creation of the special Islamic stock index would offer index variability and be expected to bolster Islamic securities, especially from companies that were about to do their IPOs.
In addition to the IHSG, the LQ-45 index and the JII, there are six other stock movement indicators in Indonesia, namely the Main Board Index (MBX), the Development Board Index (DBX), the BISNIS-27 index, the Kompas100 index, the Sri-Kehati index, and the Pefindo25 index.
Moreover, there are 10 sector benchmark indices, such as the agriculture, mining, property, and real-estate sector indices.
Friderica continued the new Islamic stock benchmark index would only be created next year. "We won\'t have the index this year since the technical aspects are still being formulated."
From January-August, the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) issued four Islamic securities, namely PT Nippon Indosari Tbk, PT Golden Retailindo Tbk, PT Evergreen Invesco Tbk, and PT Skybee Tbk stocks.
Data by BEI showed the trade sector had the largest market share of 26% in the Islamic stock structure, followed by the property (18%), industry (16%), miscellaneous (11%), consumer goods (11%), infrastructure (7%), and other sectors.
Head of the Islamic Capital Market Policy Developmant at the Accounting and Transparency Standard Bureau at the Bapepam-LK Muhamad Touriq explained Islamic stocks were grouped into one Islamic stock list, which is issued twice a year in May and November.
Data by BEI as of October 15, 2010 suggested the market cap of Islamic stocks reached IDR1,368.9 trillion or 45% of the total market cap of IDR3,042 trillion.
Marketing concept
President Director of BEI Ito Warsito disclosed the growth of the Islamic capital market was quite convincing despite the fact the market concept was still lagging behind the concept adopted for conventional products.
From January 4 to October 15, 2010, the IHSG surged 40% from 2,575 to 3,597, while JII jumped 28% from 423 to 542.
"So far, the Islamic capital market products have not been familiar to the public. We need to improve the marketing focus," said Ito.
He inserted that BEI was committed to enhancing socialization and education on Islamic products in the capital market.
"We will make socialization to alleviate the worries of potential investors that investments in stocks are equivalent of gambling," he argued recently.
Based on Bapepam-LK regulation, a capital market product can be categorized an Islamic one if its total interest-based liability to total equity ratio doesn\'t surpass 82%.
Moreover, the product\'s total interest revenues and other religiously prohibited revenues to the total revenues and other revenues ratio doesn\'t reach more than 10%.
In the meantime, M. Syakir Sula, the Secretary General of the Islamic Economic Society (MES), disclosed the Islamic capital market in Indonesia should be seriously developed to ensure it would not be lagging behind Malaysia.
Data by BEI showed Malaysia had 310 Islamic bonds, representing 57% of the total bonds, far above Indonesia\'s 6%. Furthermore, Islamic stocks on Malaysia Stock Exchange represented 88% of the total stocks and their total market cap accounted for 67% of the industry\'s total market cap.
Syakir attributed the success to the top-down efforts and to the fact that the majoru7ty of funds managed came from the Malaysian government. He exposed that the remaining Islamic funds owned by the public in Malaysia turned out not to be bigger than that in Indonesia.
"Therefore, we only need the government to accommodate the bottom up aspiration reflected from investors\' huge interests in Islamic products. As a result, the real sector will also be accelerated and support the capital market development," told Syakir.
An analyst at PT Universal Broker Indonesia Satrio Utomo viewed the seriousness of BEI in introducing the Islamic capital market had to be supported by a trading infrastructure that complied with Islamic principles.
At the moment, he opined, only few online trading facilities offered by securities companies that could filter Islamic stocks out of non-Islamic ones.
"If I\'m not mistaken, only two or three securities companies whose online trading facilities have been able to filter out Islamic stocks," he said last night.
Rudiyanto, an analyst at Infovesta Utama, also spotlighted the weak quality of Islamic mutual fund sales agents compared to the conventional ones.
"One of the challenges for Islamic mutual fund investment managers ahead is how to improve the quality of Islamic mutual fund sales agents," he reminded. (NOM)
Source : http://www.bisnis.com/en/bisnis-today/1id216006.html - Oct 21, 2010
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