Dear readers, there are five banking stocks on the Indonesia Stock Exchange (IDX) which are oversold. These five Indonesian banking stocks are:
Bank Mandiri (BMRI)
Bank Negara Indonesia (BBNI)
BPD Jawa Barat dan Banten (Bank BJB) (BJBR)
Bank Rakyat Indonesia (BBRI)
Bank Tabungan Negara (BBTN)
The five banking stocks are part of the LQ45 group of stocks on the Jakarta Composite Index (JCI). Together with these five oversold stock, there are four other oversold stocks of the LQ45 stock as follows.
Adhi Karya (ADHI)
Bumi Serpong Damai (BSDE)
Global Mediacom (BMTR)
United Tractors (UNTR)
Turning back to the five oversold Indonesian banking stocks, the price-to-earnings ratio of the largest bank in Indonesia (BMRI) is 6.28 which to me is cheap as compared to the current Price-to-Earnings ratio of the three largest banking stocks in Singapore (DBS, OCBC and UOB) at around 8.9. The Price-to-Earnings ratios of the other oversold Indonesian stocks are below.
Bank Negara Indonesia (BBNI): 4.04
BPD Jawa Barat dan Banten (Bank BJB) (BJBR): 4.30
Bank Rakyat Indonesia (BBRI): 7.76
Bank Tabungan Negara (BBTN): 37.70
Oversold stocks does not necessarily mean that these stocks will rebound soon. Also, Singapore investors into Indonesia stocks should be very familiar with the Indonesian investing landscape before any investment.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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