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Indonesia stock exchange struggles to resume Tuesday

european-stock-market copyJAKARTA: Indonesia's stock exchange has not decided yet whether trading will resume on Tuesday after technical problems that hampered the market in Southeast Asia's biggest economy on Monday.

Officials at the Indonesia Stock Exchange (IDX) were testing a "disaster recovery" system and working late into the night to try to decide whether trading will function, sources at the exchange told Reuters.

Trading on the Jakarta benchmark index briefly started late on Monday morning, before being halted and then stuttering to an early and unexpected close. It closed 0.01 percent up at 4145.878 points, one trader said.

Trade had been expected to pick up on Monday after being closed for much of last week for the Eid al-Fitr Muslim holiday.

"I thought today's trade was a disaster. We could make orders but we couldn't see market info. I think IDX management really needs to explain what happened today," said Jemmy Paul, an equity fund manager at Sucorinvest Asset Management in Jakarta, who manages over $200 million.

"Trading without any price info was like boxing with your eyes closed. It would be better if they just shut the trade for the day," he said, adding uncertainty over whether there will be trade on Tuesday was "annoying".

Indonesia's stock exchange has seen greater participation from fund managers and global institutional investors this year after the country won a double stamp of approval as an investment grade nation from rating agencies in January.

Yet worries over the rupiah currency has limited stock market gains this year and the index has lagged sharp rises in its Southeast Asian peers.

The Tokyo Stock Exchange also halted trading for over an hour this month in derivatives, including Topix futures and Japanese government bond futures, in its second glitch in six months.

Copyright Reuters, 2012