CAPITAL MARKETS - Indonesian stock exchange launches sharia index

Jakarta (ANTARA News) - PT Bursa Efek Indonesia (BEI) officially launched the Indonesia Sharia Stock Index (ISSI) here on Thursday as a reference for investors in sharia shares.

BEI president director Ito Warsito said he hoped the index could become a main indicator that reflects the entire performance of sharia shares listed in BEI. (full story)

TAKAFUL - Insurers buy gold over sukuk to boost returns

Indonesia’s Islamic insurers are starting to favour gold over bonds amid the fastest inflation in almost two years, seeking to boost returns following a ruling that allows them to invest in the precious metal.

PT Asuransi Takaful Keluarga, the country’s largest Islamic insurer, is looking to cut holdings of short-term shariah- compliant bonds to shift into the commodity, Ernawan Priarto, head of finance and accounting, said in an interview in Jakarta on February 18. Indonesia’s two other takaful operators, PT Jaya Proteksi Takaful and PT Asuransi Syariah Mubarakah, are also considering purchases of gold. (source)

BANKING - Maybank Continues Retail Sales, BII Falls 4%

Theindonesiatoday.com - The stock of Bank International Indonesia (BII) dropped 4% this morning as Maybank, controlling shareholder, continues to sell the shares through retail market operation.

In the period of December 22-29, Maybank sold about 7 million BII shares in the price range of Rp785-810 per share. This morning the stock has dropped to Rp720 or 11% below its quoted price on December 22, 2010.

BANKING - Maybank disposes shares in BII

JAKARTA: Malayan Banking (Maybank) reportedly disposed partial shares of PT Bank International Indonesia Tbk (BII), even though a capital market regulator has provided additional time.

Head of Services Sector Assessment Bureau at Financial Institution and Capital Market Supervisory Agency (Bapepam-LK) stated that the Malaysia-based bank had reported its share issuance.

BANKING - Bapepam Grants Maybank Extension on Mandatory Sell-Down of BII

Theindonesiatoday.com - The Capital Market Supervisory Agency (Bapepam) has on November 30, 2010 granted an extension of time for Malayan Banking Berhad to fulfill the sell-down requirement and complete the sell-down exercise of Bank International Indonesia (BII) by June 1st, 2011.

TAKAFUL - Zurich Enters Indonesian Insurance Market Amidst Record Growth

Zurich Financial Services (Zurich) has completed a deal to acquire the majority stake in PT Mayapada Life of Indonesia. This will give the multinational Swiss insurer immediate access to the Indonesian life insurance market. PT Mayapada Life is a subsidiary of the Mayapada Business Group – which will retain a 20 percent interest in the Indonesian life insurer – with Zurich holding 80 percent in the new venture.

CAPITAL MARKETS - Islamic securities attract more interests - Islamic stock trading infrastructure needs to develop

JAKARTA: Indonesia Stock Exchange (BEI) is responding to investors\' huge interests in the Islamic capital market by considering grouping 198 Islamic stocks into one special index group.

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.

FINANCIAL MARKETS - Sharia mutual fund weakens - Selling agent quality needs improving

JAKARTA: Total of net asset value (NAV) of sharia equity fund fell 8.50% January-September into IDR1.87 trillion as from IDR2.05 trillion last year.

Data of PT Infovesta Utama, the information service and independent research for mutual fund and bonds, show the falling wealth management of sharia equity fund product.