Bandung (Admin). At the time when the share prices of other sectors are plummeting as the impact of the world oil price hike that hit USD90 per barrel, share prices of the banking sector remain intact.
Some banking issuers have even made a significant increase. According to the President Director of Momentum Synergy Asset Management Rizka Baely, this good condition is the result of investors' good perception towards interest rate stability.
Additionally, many investors feel safe that Indonesian banks are not affected by the subprime mortgage crisis in the United States. This has produced a positive sentiment, he continued.
M. Altatif, an analyst of PT BNI Securities, added that the increase of banking share prices was due to the positive sentiment on the Fed's plan to lower interest rates. The market participants predict that this will lead to lower inflation rate as interest rates decrease.
Indonesian banks that are listed in the stock exchange such as BRI, BCA, Bank Mandiri, Bank Danamon, Bank Niaga and BNI are in good positions. When JSX closed on Friday, 26th October, BCA was closed Rp 100 higher from Rp 7,000 to Rp 7,100; BRI went up by Rp 250 from Rp 7,350 to Rp 7,600; and Bank Mandiri rose from Rp 3,850 to Rp 3,875 .
What about BTPN? Let's wait and see. (FDT, source: Koran Tempo - Monday, 29th October 2007).