JAKARTA – Indonesia Stock Exchange (IDX) introduces IDXCyclical Economy30/Economic30 index, consisting 30 cyclical constituents based on industry classification. This index will be added into the long list of existing indices, including IDX30, IDX45, Kompas100, Indeks52, and Bisnis27.

As quoted from information disclosure today (12/7), Pande Made Kusuma Ari, Head of Trading Regulation and Operation Division of IDX, mentioned that these 30 selected constituents reported high liquidity and market capitalisation, supported by profound fundamental aspects of their performances.

This newest index is made using Capped Adjusted Free Float Market Capitalization Weighted method with maximum stock portion capped at 25%, adjusted during evaluation. The index was put together since March 1, 2019, with base value of 100.

Ignatius Denny Wicaksono, Head of Business Development Division of IDX, said that the selection of stocks during the initial phase of potential constituent selection refers to several factors, such as transaction value and frequency in the regular market, capitalisation in free float market, and representativeness in cyclical sector, as well as fundamental aspects, including compliance and financial performance.

Cyclical stocks consist of several sectors and subsectors. They include consumer cyclical sector, as well as its subsectors of automobile & component, household goods, leisure goods, apparel & luxury goods, consumer services, media & entertainment, and retailing. They also include financials sector, including subsectors such as bank, financing service, investment service, insurance, and holding & investment companies. Furthermore, they also count sector and subsector of basic materials in, as well as property and real estate sector and subsector. (LK/ZH)