Global Capital Market - KEU447
Individual Assignment of Capital Market
SGX – IDX – SET
By:
Caroline Eva Mursito / 16943
Economic Faculty
Atma Jaya Yogyakarta University
2009
HISTORY
 Singapore Exchange Limited (SGX)
Singapore Exchange Limited (SGX) was inaugurated on 1 December 1999, following the
merger of two established and well-respected financial institutions - the Stock Exchange
of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX).
On 23 November 2000, SGX became the first exchange in Asia-Pacific to be listed via a
public offer and a private placement. The SGX stock is a component of benchmark
indices such as the MSCI Singapore Free Index and the Straits Times Index.
 Indonesia Stock Exchange (IDX)
The capital market in Indonesia has actually exist long before the Independence of
Indonesia. The first stock exchange in Indonesia was established on 1912 in Batavia
during the Dutch colonial era. At that time, the Exchange was established for the interest
of the Dutch East Indies (VOC).
During that era, the capital market grew gradually, and even became inactive for a period
of time due to various conditions, such as the World War I and II, power transition from
the Dutch government to Indonesian government, etc.
Indonesian government reactivated its capital market in 1977, and it grew rapidly ever
since, along with the support of incentives and regulations issued by the government.
Below is the brief history of Indonesia Stock Exchange:
December 14, 1912
1914 – 1918
1925 – 1942
Early 1939
1942 – 1952
1952
1956
1956 – 1977
August 10, 1977
1977 – 1987
1987
1988 – 1990
June 2,1988
December 1988
June 16, 1989
July 13, 1992
May 22, 1995
November 10, 1995
1995
2000
2002
2007
The first Stock Exchange in Indonesia was built in Batavia (currently
known as Jakarta) by the Dutch East Indies.
The Batavia Stock Exchange was closed during the World War I.
The Batavia Stock Exchange was re-opened, and new stock exchanges
were established in Semarang and Surabaya.
Due to the political issues on World War II, the stock exchanges in
Semarang and Surabaya were closed.
Jakarta Stock Exchange (JSX) was re-closed during the World War II.
JSX was re-activated by the issue of the Capital Market Emergency
Regulations 1952 by the Minister of Justice of Indonesia (Prof. Dr. Sumitro
Djojohadikusumo). The only product traded in the Exchange at that time
was the Indonesian Government bond (1950).
Due to the nationalism programs on Dutch’s companies by the Indonesian
Government, JSX became stagnant.
During this period, JSX became inactive.
The Exchange was re-activated by the President Soeharto. It was
supervised under the management of the Capital Market Supervisory
Agency (Badan Pengawas Pasar Modal, or BAPEPAM). The re-activation
of the capital market was also marked by the go public of PT Semen
Cibinong as the first issuer listed in the JSX. July 10th is celebrated as the
anniversary of the Capital Market in Indonesia.
The activity of stock trading in JSX was dull. There were only 24 listed
companies in JSX. Most people prefered to invest their money in Banks
rather than the Capital Market.
PAKDES 87 (December Package 1987) was issued to give ways for
companies to go public and foreign investors to invest their money in
Indonesia.
Deregulations packages in Banking and Capital Market were made. JSX
welcomed foreign investors. The activities of JSX were improving.
Indonesia Pararel Bourse started to operate and managed by the Securities
and Money Trading Organization. It consisted of brokers and dealers.
The government issued PAKDES 88 to give ways for companies to go
public, and some other regulations that brought positive impacts on the
capital market growth were made.
Surabaya Stock Exchange started to operate and was managed by the
Surabaya Stock Exchange Inc.
JSX was privatized, and as a result, the functions of BAPEPAM changed to
become the Capital Market Supervisory Agency (BAPEPAM-LK). This
date is celebrated as the anniversary of Jakarta Stock Exchange.
JSX introduced its computerized Jakarta Automatic Trading System
(JATS).
The Government of Indonesia issued Regulations No. 8 year 1995 on
capital market. This regulation was effective on January 1996.
Indonesia Pararel Bourse was merged into Surabaya Stock Exchange.
Scripless trading system was introduced for the first time in Indonesia’s
Capital Market.
JSX started to implement the remote trading system.
Surabaya Stock Exchange was merged into Jakarta Stock Exchange. As a
result, JSX changed its name into the Indonesia Stock Exchange.
 Stock Exchange of Thailand (SET)
In 1969, as recommended by the World Bank, the government acquired the services of
Professor Sidney M. Robbins from Columbia University to study the development
channels of the Thai capital market. Professor Robbins had previously served as Chief
Economist at the United States Securities and Exchange Commission. The same year
proved an eventful one for the Thai capital market, as the Bank of Thailand also formed a
Working Group on Capital Market Development, which was assigned the task of
establishing the stock market. A year later, in 1970, Professor Robbins produced a
comprehensive report entitled "A Capital Market in Thailand". This report became the
master plan for the future development of the Thai capital market.
In 1972 the Government took a further step in this direction by amending the
"Announcement of the Executive Council No. 58 on the Control of Commercial
Undertakings Affecting Public Safety and Welfare". The changes extended Government
control and regulation over the operations of finance and securities companies, which
until then had operated fairly freely. Following these amendments, in May 1974, longawaited legislation establishing "The Securities Exchange of Thailand" (SET) was
enacted. This was followed by revisions to the Revenue Code at the end of the year,
allowing the investment of savings in the capital market. By 1975 the basic legislative
framework was in place and on April 30, 1975, "The Securities Exchange of Thailand"
officially started trading. On January 1, 1991 its name was formally changed to "The
Stock Exchange of Thailand (SET) ".
COMPANIES THAT LISTED
Capital Market
Companies that listed
Singapore Exchange Limited (SGX)
722 companies
Indonesia Stock Exchange (IDX)
383 companies
Stock Exchange of Thailand (SET)
523 companies
TYPES OF PRODUCT THAT ARE TRADED
Capital Market
Product that are traded
Bonds, Debentures and Loan Stocks Business
Trusts
Equities
Exchange Traded Funds (ETFs)
Singapore Exchange Limited (SGX)
Global Depository Receipts (GDRs)
Infrastructure Funds
Real Estate Investment Trusts (REITs)
Warrants
Equities
Bond
Indonesia Stock Exchange (IDX)
Derivatives
Mutual Funds
Syariah Product
Equities
Bond
Stock Exchange of Thailand (SET)
Derivatives
ETF
INDEX THAT ARE USED
Capital Market
Index that used
FTSE/ASEAN Indices
Singapore Exchange Limited (SGX)
Prime Partners China Index
FTSE SGX Asia Shariah 100 Index
JSX
JII
LQ45
Indonesia Stock Exchange (IDX)
MBX
DBX
Kompas 100
SET index
Stock Exchange of Thailand (SET)
Industry group index and Sectoral index
SET50 index and SET100 index
MARKET INDEX FOR LAST 5 YEARS (in $ US Million)
Market Index (in $ US Million)
Capital Market
2003
Singapore Exchange Limited (SGX)
Indonesia Stock Exchange (IDX)
Stock Exchange of Thailand (SET)
475.81
2004
2005
2006
2007
531.73
601.28
783.28
969.70
691.90
1,000.23
1,162.64
1,805.52
772.15
668.10
713.73
679.84
2,745.83
858.10
MARKET CAPITALIZATION FOR LAST 5 YEARS (in $ US Million)
Market Capitalization (in $ US Million)
Capital Market
Singapore Exchange Limited (SGX)
Indonesia Stock Exchange (IDX)
Stock Exchange of Thailand (SET)
2003
2004
2005
2006
2007
148,502.6
217,617.8
257,340.6
384,286.4
539,176.6
54,659.1
73,250.6
81,428.1
138,886.4
119,017.2
115,390.4
123,885.0
140,161.3
211,693.0
197,129.4
VOLUME OF TRANSACTION FOR LAST 5 YEARS (in $ US Million)
Volume of Transaction (in $ US Million)
Capital Market
2003
Singapore Exchange Limited (SGX)
Indonesia Stock Exchange (IDX)
Stock Exchange of Thailand (SET)
2004
2005
2006
107,296.5
91,928.2
116,456.5
180,242.7
14,652.4
27,517.7
41,633.5
48,810.0
102,420.8
116,381.2
95,645.7
100,928.6
OTHER DATA RELATED
Capital Market
Other Data
Singapore Exchange Limited (SGX)
There are 13 active brokers.
Indonesia Stock Exchange (IDX)
The IDX depend on the Undang-Undang No. 8 year 1995
Stock Exchange of Thailand (SET)
-
2007
381,288.7
114,631.1
117,912.0
ANALYSIS AND CONCLUSION
In the market that shown before Singapore Exchange Limited (SGX), Indonesia Stock Exchange
(IDX), and Stock Exchange of Thailand (SET), all of them have different history, types of
product that are traded, index, market index, market capitalization and volume of transaction. We
can know just from the data that Singapore is developing country and have developed market.
But both Indonesia and Thailand are emerging market.
SGZ has the more listed company, the SET and the last is IDX. But there are more companies
that not yet been listed. Most of the market listed same product that being trade which are bond
and equity. In SGZ, they have more product that being offer but they do not have derivatives that
offered by IDX and SET. All of the market have and apply different kind of index, depend on
each government policy and its economic.
In the market index, market capitalization and volume of transaction, SET is decrease in year
2004. It happen because incidents that happening and effected on their economy. The major
incidents happen in the prime minister election, when Thaksin Shinawatra with his party, Thai
Rak Thai won the election. Even though in previous Thaksin Shinawatra’s term (term 2001), he
achieve many success, but his policy is giving more interest in his family firm and business than
to the nation. And this make the civil demonstrate and destroy the Thailand economy in 2004.
So, it does not matter whether the countries is emerging or develop country, the increase growth
in the market can happen when the country economic itself is in a good condition and continues
to growth. When the country have problem, like demonstration, high rate of unemployment,
crime, etc and this problem is unfinished or solved for a long time, it will make the market going
down. Financial crisis can make problem too, not just to particular countries and capital markets,
but to both national and global rage.
APPENDIX
http://www.idx.co.id
http://www.set.or.th
http://www.sgx.com
http://www.world-exchanges.org
http://www.bloomberg.com
http://www.googe.com
http://www.googlefinance.com
http://www.nationalmultimedia.com
http://www.faqs.org/abstracts/Regional-focus-area-studies
http://www.icmrindia.org/casestudies