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Banking stocks to soar further as ‘perception banks’ revealed: Analysts
The appointment of nine banks as trustees for the tax amnesty program will give positive impact on the lenders’ shares in the medium term, analysts have said, pointing that it will help boost the liquidity in the financial market.
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Indonesia Stock Exchange (IDX) trading floor in Jakarta on Oct. 19, 2015. (the jakarta post/Wienda Parwitasari)
T
he appointment of nine banks as trustees for the tax amnesty program will have positive impacts on the lenders’ shares in the medium term, analysts have said, pointing out that it will help boost liquidity in the financial market.
Investa Saran Mandiri analyst Hans Kwee said the public expected the banks, known as “perception banks”, to generate more revenue as their liquidity increased on account of the coming repatriated assets. “Due to this expectation, the lenders’ share prices will increase,” he said in Jakarta on Wednesday.
Danareksa Sekuritas analyst Lucky Bayu Purnomo said the additional liquidity would increase the banks’ revenues because the liquidity would result in the lenders disbursing more loans for vital projects, which ultimately leads to more returns.
He added that lenders’ share prices increased when the House of Representatives passed the tax amnesty bill into law on June 28.
State-owned lender Bank Mandiri, for example, saw a 6 percent increase in its share price to Rp 10,175 (US 77 cents) on July 12, from Rp 9,600 on June 29. Private lender Bank Central Asia’s (BCA) share price rose 3.4 percent to Rp 13,750 on July 12, from Rp 13,300 on June 29.
Finance Minister Bambang Brodjonegoro said on Tuesday the trustees of repatriated assets included the state-owned banks Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), Bank Tabungan Negara (BTN) and Bank Mandiri, private banks BCA, Bank Tabungan Pensiunan Nasional (BTPN) and Bank Danamon, as well as two sharia banks. The sharia banks have yet to be identified. (vny/ags)
