Novice investors in Indonesia get burned by frequent IPO reversals

Numerous neophyte investors in the Indonesia Stock Exchange this year are discovering painfully that sound research beats the casino approach. (Photo by ADEK BERRY / AFP)  © AFP/Jiji

Novice investors crowding into the Indonesian stock market have had baptisms of fire after a number of hot initial public offerings, including the e-commerce group Bukalapak, crashed below their early trading prices.

In a country where around a half of the 270 million population remains unbanked, one million people invested in stocks for the first time this year, according to the Indonesia Stock Exchange (IDX). Retail investors accounted for 59% of trading value on the IDX, it said, compared to only 37% in 2019.

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