After its shares surged 4.33 percent to IDR 19,875 a piece on Friday (22/09), Bank Central Asia (BCA) is now the biggest company listed on the Indonesia Stock Exchange (in terms of market capitalization). On the last trading day of the week the finance sector outperformed all other sectors on the Indonesian exchange. The market seemingly anticipated Bank Indonesia's latest interest rate cut.
On Friday (22/09), after markets had been closed, the central bank of Indonesia (Bank Indonesia) announced it decided to cut its key BI 7-day Reverse Repo Rate 25 basis points (bps) from 4.50 percent to 4.25 percent at the September policy meeting, a move that should lead to accelerating credit growth (although it will require several months before the impact of the rate cut is felt). This is good news for banks.
Bank Central Asia (BCA) saw its market capitalization on the Indonesia Stock Exchange rise to IDR 490 trillion (approx. USD $36.8 billion) on Friday after its shares surged. Meanwhile, Indonesia's state-controlled communication and network provider Telekomunikasi Indonesia (Telkom) saw its shares decline 1.07 percent on the last trading day of the week and therefore the company fell to second position in terms of biggest market cap on the Indonesia Stock Exchange.
Stock Quote Bank Central Asia (BCA) - BBCA:
Mirae Asset Sekuritas Indonesia commented on BCA's rise to the top on the market cap list, explaining that the central government's economic growth program has helped the domestic banking sector, including BCA as plenty of loans are required for the (infrastructure) development program.
Based on data from the Financial Services Authority (OJK), BCA's credit disbursement reached IDR 434.4 trillion, up 14.8 percent (y/y).
Top Market Capitalization Indonesia Stock Exchange at 22 September 2017:
|Company||Sector|| Market Cap.
(in trillion IDR)
(% of total)
|Bank Central Asia||Banking||490||7.5|
|Bank Rakyat Indonesia||Banking||383||5.9|
|Bank Negara Indonesia||Banking||138||2.1|
Source: Bisnis Indonesia