The Jakarta Composite Index (JCI) of the Indonesia Stock Exchange, which reached a new record high of 5,829.7 in the first half of 2017, brought blessings to investors. Several small-cap stocks recorded increases of over six hundred percent. This excludes stocks newly listed in 2017.
One example is PT Bank Ina Perdana Tbk (BINA), reportedly targeted by PT Bank BCA Tbk. Its share price surged 626 percent to Rp 1,370 per share on June 22, 2017, from Rp 244 per share on December 30, 2016. Similarly, PT Wicaksana Overseas Tbk (WICO) soared 600 percent to Rp 352 per share, and PT Asuransi Jasa Tania Tbk (ASJT) also saw its price increase by more than 500 percent to Rp 446 per share.
The maintenance of Indonesia's macroeconomic fundamentals, such as inflation rate, rupiah exchange rate stability, and economic growth of 5 percent, again spurred investor interest in accumulating shares. Because the prices of blue-chip stocks were already quite expensive and unaffordable for small investors, they shifted their investments to second- and third-tier stocks. The result was that small-cap stocks rose by hundreds of percent.