Jakarta (ANTARA) \u2014 Rosan Roeslani, Chief Executive Officer of\nDanantara Indonesia, said that bank shares on the Indonesia Stock\nExchange (BEI) are currently undervalued, with price-to-book value (PBV)\nbelow 1x. In normal conditions, he explained, the valuations for the\nbanking sector should be in the 2x to 3x PBV range, indicating definite\nupside. \u201cIn banking, the PBV is below 1 now, whereas in normal times it\nwould be above 2, above 3. So there\u2019s definitely upside potential,\u201d\nRosan told reporters at a press conference at the BEI building in\nJakarta on Tuesday.<\/p>\n
He also stressed that price volatility in the stock market is normal,\nwhile the fundamentals of the listed issuers remain solid and offer\nattractive yields. \u201cFrom our perspective, it\u2019s true there will be ups\nand downs in the market, but if you look at the fundamentals, the\ncompanies are solid and yield is high; current pricing is very good,\u201d he\nsaid. Rosan noted that this confidence aligns with positive developments\nin the number of retail investors in the Indonesian market, which now\nstands at about 26-27 million, up from around 20 million last year, an\nincrease of about 6 million.<\/p>\n
He said the rise reflects growing belief in the market\u2019s future\nprospects. \u201cLogically, this growth occurs because our investors are\nconfident the bourse will improve and be promising going forward. If\nthere were no prospects, the numbers would have fallen,\u201d Rosan added. He\ncredited ongoing investor education by BEI and the Financial Services\nAuthority (OJK), particularly among domestic and younger investors, as\nessential for communicating that medium- to long-term investments in the\nequity market can deliver good returns and support economic growth.<\/p>\n
Data from the close of session I on Tuesday (19\/05) showed the\nIndonesia Stock Exchange Composite Index (IHSG) fell 202.97 points or\n3.08% to 6,396.27, while the LQ45 index dropped 13.67 points or 2.10% to\n637.42. Trading frequency reached 1,731,057 transactions with 27.96\nbillion shares changing hands valued at Rp15.13 trillion. A total of 96\nshares rose, 611 fell, and 107 were unchanged.<\/p>\n
On Tuesday (19\/5), Deputy Speaker of the House of Representatives\nSufmi Dasco Ahmad, together with Danantara Indonesia officials, visited\nthe BEI building. Rosan Roeslani, accompanied by Danantara COO Dony\nOskaria, were welcomed by OJK Chairman Friderica Widyasari Dewi and BEI\nrepresentative I Gede Nyoman Yetna.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/danantara-ceo-indonesian-banking-stocks-still-below-fair-value-1779546282", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }