Fund from tax amnesty entering stock market: BEI

The Indonesian Stock Exchange (BEI) said part of the funds declared by tax payers under the tax amnesty program is believed to have entered the countrys stock market as indicated by the increase in the daily share transactions.

“In the past two months, transactions has risen to average Rp8.3 trillion per day from normally Rp6 trillion until June this year. The transaction rose after the tax amnesty program,” BEIs Director of Trade Alpino Kianjaya said here on Thursday.

He said the composite share price index (IHSG) also continued to increase resulting in a surge in market capitalization to almost Rp5,900 trillion.

The frequency of trade transactions increased from 220,000 on the average to 250,000 transactions per day.

“That is a positive sentiment from the tax amnesty. The increase in frequency and value indicate the prospect of our share market is positive< he said.

Based on data from BEI, the IHSG rose 17.77 percent this year until Oct. 6 to 5,409.34 points with capitalization reaching Rp5,849 trillion.

Alpino Kianjaya said another positive gain from the tax amnesty is an increase of 65 percent in share transactions by local investors .

“Currently the daily transactions are dominated by domestic investors, accounting for 65 percent with foreign investors accounting for 35 percent,” he said.

Source: Antara News