You can contact the author (Teguh Hidayat) by email, teguh.idx@gmail.com. The author live in Jakarta, Indonesia.

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List of Stock Indices in Indonesia

One method to analyze the movement of the Jakarta Composite Index (JCI), is to compare it with the movement of stock indices in other countries. That's why you must be familiar with several well-known indices such as the Dow Jones, Nikkei, Hang Seng, etc. Around the world, there are lot of stock indices, so you can not read them all. But here are some list of prominent stock indices in the world.

Ticker
Name
Country
^JKSE
Jakarta Composite Index
Indonesia
^KLSE
Kuala Lumpur Composite Index
Malaysia
^STI
Strait Times
Singapore
^AORD
All Ordinaries
Australia
000001.SS
Shanghai Composite Index
China
^HSI
Hang Seng
Hong Kong
^BSESN
Bombay Stock Exchange
India
^N225
Nikkei 225
Japan
^KS11
Kospi
South Korea
^DJI
Dow Jones Industrial Average
United States
^GSPC
S&P 500
United States
^IXIC
NASDAQ
United States
^FTSE
FTSE 100
United Kingdom
^GDAXI
DAX
Germany
^FCHI
CAC 40
France
^BVSP
Bovespa Sao Paolo
Brazil
^MERV
Merval Buenos Aires
Argentina

Note: The ticker above is the ticker/quote on Yahoo Finance (www.finance.yahoo.com)

We start from the region of South East Asia and Australia. The main indices here are JCI (of course), the KLSE of Malaysia, the Straits Times Index (STI) of Singapore, and Australia's All Ordinaries. Especially for the STI, it’s like the 'Dow Jones of South-East Asia’, where the index reflects the movement of thirty blue chip stocks listed in Singapore, such as Jardine Cycle & Carriage (parent company of Astra International), SingTel, and Wilmar International. Similarly, the KLSE only reflects the movement of thirty blue chip stocks in Malaysia, such as CIMB Group (parent company of Bank CIMB Niaga), Air Asia, and Petronas.

While JCI and All Ordinaries, the movement of the indices reflects the movement of all the stocks that listed in Indonesia and Australia. Based on data from Yahoo Finance, currently the number of JCI’ stock components are 347 stocks, while AllOrd 398 stocks.

In greater Asia, there are several important indices, like the Shanghai Composite Index (SCI) of China, Hang Seng of Hong Kong, Bombay Stock Exchange (BSE) of India, Nikkei of Japan, and South Korea's Kospi. In China there is another stock index, ie Shenzhen, but we pay more attention to the Shanghai.

Crossing to America, in the New York Stock Exchange, there are at least 6,000 listed companies, far more than any other country, so maybe that's why they created indices that focus on specific stocks. And among these indices, the prominent ones are the Dow Jones Industrial Average (DJIA, or simply Dow) and the Standard & Poor's 500 (SP500). Dow is an index of 30 blue chip stocks in the United States, such as Exxon Mobil, Microsoft, and JP Morgan, while the SP500 is an index for 500 stocks that are selected based on certain criteria. World's most famous investor, Warren Buffett, using the increase/decrease of the SP500 index as a comparison to the growth/decline of his portfolios.

And what about the NASDAQ? Well, although this index is also quite popular , but I rarely pay attention to this one because the index is actually a sectoral indices, in this case the sector of technology. But since America is the home of tech genius like Microsoft, Apple, Facebook, etc., and most of these companies are operating around the world, then NASDAQ becomes important.

While in Europe, some important stock indices are FTSE ‘Footsie’ of England, German’s DAX and French CAC. Why these three countries and not anything else? Because throughout Europe, the three are the most developed countries. If you do not want to pay attention to the DAX and the CAC, the Footsie is enough. The Index reflects the movement of one hundred stocks in the UK that have been selected based on certain criteria. While the London Stock Exchange (LSE) itself has at least 2,500 listed companies, including Bumi Plc (its ticker is BUMI.L), but the company is not included in the Footsie 100 component stocks.

The final region is Latin America, where there are two important indices, the Brazilian Bovespa and Argentina Merval. Actually, these two indices is not too important to be noticed, but it would not hurt if you also put these indices in your watchlist.

And how about Indonesia? Is there only JCI? Of course not. Fortunately, Yahoo Finance also provides charts for the local indices such as the LQ45 (the index that contains 45 stocks of most liquid), as well as sectoral indices for specific sectors. Here's the detail:

Ticker
Name
^JKLQ45
LQ45 Index
^JKII
Jakarta Islamic Index
I:BISNIS27.JK
Bisnis 27
I:PEFINDO25.JK
Pefindo 25
I:IDX30.JK
IDX 30
I:SRI-KEHATI.JK
Sri Kehati
I:KOMPAS100.JK
Kompas 100
^JKDBX
Development Board
^JKMBX
Main Board
^JKINFA
Infrastructure
^JKFINA
Finance
^JKCONS
Consumer Goods
^JKTRAD
Trade & Service
^JKBIND
Basic Industries
^JKPROP
Property
^JKMING
Mining
^JKAGRI
Agriculture
^JKMISC
Miscellaneous

From the above indices, I usually take an attention to sectoral indices, in order to analyze the development of certain sector. For example, the index of property (^JKPROP), in the last year had gained 61.5%, from 192 to 311, which is in line with the property in the last one year. While mining index (^JKMING), in the last year had dropped 16.1%, and this is also in line with the decline in the performance of many mining companies in the last year, especially coal. And so on.

Okay, I hope this was useful. For those of you who might still confused about how to use Yahoo Finance, including to create indices watchlist as already mentioned above, you can ask the sales person in the securities where you open an account there.

Original article was written at October 3, 2012

Any inquiries about investment in Indonesia Stock Market? Please send an email to teguh@averepartners.com.

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