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Press Release IDX-PEFINDO Prime Bank for The Period of July 1, 2024 - December 31, 2024

Press Release IDX-PEFINDO Prime Bank for The Period of July 1, 2024 - December 31, 2024

30 Jun 2024

IDX-PEFINDO Prime Bank Index Constituents for the Period July to December 2024

PEFINDO and the Indonesian Stock Exchange (IDX) have conducted a major review, which takes place every six months in December and June. The results of this review will be valid for the next six months. The analysis used rating data held by PEFINDO and stock trading data from banking sector companies owned by the IDX. The following companies are constituents of the IDX-PEFINDO Prime Bank Index for the period of July to December 2024:

Figure 1. Constituents of IDX-PEFINDO Prime Bank for July - December 2024

No.

Ticker

Company Name

Corporate Rating

1

BBRI

Bank Rakyat Indonesia (Persero) Tbk.

idAAA

2

BMRI

Bank Mandiri (Persero) Tbk.

idAAA

3

BBNI

Bank Negara Indonesia (Persero) Tbk.

idAAA

4

BBCA

Bank Central Asia Tbk.

idAAA

5

BBTN

Bank Tabungan Negara (Persero) Tbk.

idAAA

6

BRIS

Bank Syariah Indonesia Tbk.

idAAA

7

BNGA

Bank CIMB Niaga Tbk.

idAAA

8

BDMN

Bank Danamon Indonesia Tbk.

idAAA

9

PNBN

Bank Pan Indonesia Tbk. 

idAA

10

BJBR

Bank Pembangunan Daerah Jawa Barat dan Banten Tbk.

idAA

IDX-PEFINDO Prime Bank is Projected to Return to Stability

The higher for longer conditions on benchmark interest rates in various developed countries have resulted in pressure on stock markets in developing countries, including the Indonesian stock market. This has led to capital outflows and put pressure on most shares in the Indonesian Stock Exchange, especially in the banking sector, which plays a significant role in the Indonesian stock exchange. The IDX-PEFINDO Prime Bank Index, a stock index that comprises banking shares with an investment grade rating from PEFINDO, has also experienced a correction in response to the pressure on the banking sector in Indonesia. However, we remain optimistic that the IDX-PEFINDO Prime Bank Index will stabilize and demonstrate strong performance as the banking sector continues to exhibit positive trends. We anticipate a recovery in this market-driving sector once negative market sentiment subsides, and future interest rate cuts become clearer.

Our belief is well-founded. This is based on backtesting results that demonstrate superior performance. Starting from January 3, 2017, the IDX-PEFINDO Prime Bank Index has displayed stronger performance compared to other reference indexes on the IDX, as well as indexes focused on the financial and banking sector, such as the Composite Stock Price Index (JCI), LQ45 index, IDX30 index, IDX Financial Sector index, and Infobank15 index. As of June 28th, 2024, the rate of return on the IDX-PEFINDO Prime Bank Index, compared to its base date (January 3, 2017), has reached 125.14%. In comparison, the returns recorded by JCI, LQ45, IDX30, IDX Sector Financial, and Infobank15 were 33.88%, 0.51%, -6.98%, 73.10%, and 93.70% respectively. The comparison of the return values for each index indicates that the IDX-PEFINDO Prime Bank Index has performed exceptionally well in generating alpha compared to other reference indexes on the IDX.