Glimpsing the Prospects of Banking Stocks Amid Market Volatility

Jakarta, CNBC Indonesia - Amid market volatility, banking stocks are still considered to have positive prospects. This is supported by solid credit growth and high profitability potential.

Market observer or Stock Enthusiast Rita Effendy explained that the banking sector remains attractive to investors. However, growth in that sector will be more selective. In this regard, there are bank stocks that excel in terms of yield and re-rating potential. There are also bank stocks that offer appeal through stability.

Nevertheless, investors still need to be cautious in the near term while awaiting decisions from Morgan Stanley Capital International (MSCI). In this case, MSCI has the potential to use data on information openness regarding shareholders holding more than 1% to adjust free float estimates.

“However, MSCI will not immediately incorporate that data into the free float assessment or index calculations until the review is complete and market participant input is evaluated. But, if ownership data >1% is used, there could be a decline in the Foreign Inclusion Factor (FIF),” Rita stated when contacted by CNBC Indonesia on Monday (27/4/2026).

She said that several banking stocks could be affected if MSCI implements such a free float policy. The recent weakening of banking stock prices is also suspected to be due to foreign investors exiting following the MSCI decision. However, it should be remembered that stock declines due to foreign outflows can actually be seen as an opportunity for long-term oriented investors to buy on weakness gradually.

Here, Rita views BBRI stock as still attractive due to rebound opportunities. The main catalysts for BBRI stock come from asset quality improvements, including the divestment of PT Permodalan Nasional Madani (PNM), reduced credit costs, and stabilisation of Net Interest Margin (NIM). Apart from that, the upward momentum of BBRI stock still depends on the direction of the benchmark interest rate and foreign fund flows.

BBRI stock also has solid fundamentals thanks to its dominance in the micro segment, high profitability, and strong recurring income. In addition, BBRI offers attractive dividends with double-digit yields and a dividend payout ratio (DPR) of around 90%, making this stock suitable for long-term investors seeking growth and dividend gains.

“The current valuation (of BBRI stock) is below historical levels or tends to be discounted. With asset quality improvements and potential profit recovery in 2026, this points more towards a re-rating opportunity, and not a value trap,” Rita emphasised.