JAKARTA (Yosefardi) – Investors focused buying banking stocks this morning amid expectation of no change in the Federal Reserve’s (Fed) rate policy and BI Rate.
Governor of Bank Indonesia (BI), central bank, Agus D.W Martowardojo has expressed to keep the benchmark BI Rate at current level (7.5%) at the governors meeting (RDG) in October 15, 2015. BI has since February 2015 maintain BI Rate at 7.5%.
This morning Asian shares rose in early trade after prospects of a near-term interest rate hike by the Fed ebbed in the wake of Friday’s weaker-than-expected U.S. employment data, Reuters reported.
Bank Central Asia jumped 6.74% at 9.46 am Jakart time, Bank Mandiri surged 4.56%, Bank Danamon climbed 4.55%, Bank Rakyat Indonesia hiked 4.03%, and Bank Negara Indonesia lifted 3.5%.
Year to date, as at Friday last week, Bank Rakyat Indonesia has fallen 25.5%), Bank Mandiri lost 28.8%, Bank Negara Indonesia dropped 32%, and Bank Central Asia fell 9.5%.