Big cap banking stocks are under pressure after the financial report, according to analyst recommendations

Reporter: Ika Puspitasari | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Most of banking stocks on Tuesday’s trading (271/0) parked in the red zone. One reason for this was the decline in the financial statements of the third quarter of 2020 for a number of big cap banks.

Three book IV banks that have reported declining revenues, park their shares in the red zone. Shares of Bank Negara Indonesia (Persero) Tbk (BBNI) cut 2.27% to the price of Rp 4,740 per share.

PT Bank Central Asia Tbk (BBCA) weakened 0.43% to a price of IDR 28,950 per share, while Bank Mandiri (Persero) Tbk (BMRI) stagnant at IDR 5,775.

Head of Investment Research Infovesta Utama, Wawan Hendrayana, said that one of the factors for the weakening of banking stocks was in line with the realization of weaker performance in the third quarter of 2020 compared to the same period the previous year.

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Wawan said, objectively, the achievement of banking performance was quite good in the midst of the Covid-19 epidemic. According to him, the decline in prices at the close of trading yesterday, Tuesday (27/10) was quite reasonable.

In the future, he believes that as long as the Covid-19 pandemic can be controlled, especially with the presence of vaccines, it is hoped that people’s business activities can recover. He sees that the prospect of banking stocks is still attractive in line with the economic recovery.

According to him, the corrected performance of banking shares has also been predicted by market players. Currently, market players are projecting the potential for economic improvement after the Covid-19 pandemic.

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“The financial sector should benefit the most, when people’s activities are normal, it means that funding needs will increase. Second, what is expected is an increase in transactions from the public, “he said, Tuesday (27/10).