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Wednesday, October 20, 2010

Corporate bond daily trading increased 163%

Irvin Avriano A.

Corporate bond daily trading increased 163%
JAKARTA: The average daily trading volume of corporate bonds during the 3rd quarter of 2010 increased by 163% or at IDR369.03 billion per day compared with daily average during the 3rd quarter of 2009 as much as IDR140.45 billion per day.

Based on data from the Indonesia Stock Exchange (IDX/PT Bursa Efek Indonesia) that been published today, the daily trading frequency of bonds issued by corporations, including corporate bonds and sukuk, has increased by 69%. The increasing frequency happens from 36 times per day to 61 times per day for the same period.

Ramdhan Ario Maruto, PT Anugerah Securindo Indah Head of Fixed Income Division, agreed with corporate bonds trading data. According to him, the average trading volume increased due to begin the shifting of government bonds (surat utang negara/SUN) market to the corporate bond market.

"The shifting was reflected by the habit of regular market participants transact government bond with the amount of IDR10 billion-20 billion in a single transaction, and transactions of corporate bonds began to rise from the usually IDR1-2 billion to IDR5--10 billion per transaction," he said when contacted this afternoon.

He said the trading volume also shows the increasing liquidity in the corporate bond market that affected from the increasing transactions in government bond market. Previously, Ramdhan informed, corporate bond transactions relatively low in the capital market and valued far less liquid than government bond transactions.

The IDX data also showed the volume of government bond securities transactions during the 3rd quarter of 2010 that have been increased by 95% or to IDR5.91 trillion per day from IDR3.02 trillion in the 3rd quarter of 2009.

SUN daily trading frequency also increased by 70% from as much as 200 times per day during the 3rd quarter of 2009 to 339 times per day during the 3rd quarter of this year.



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