Foreign Investors Lead Net Buying Spree in State-Owned Bank Stocks for the First Time

JAKARTA, Investortrust.id – Foreign investors turned net buyers of Indonesian equities for the first time this year, purchasing shares worth Rp 593.86 billion on Wednesday, January 15, 2025.

The move coincided with a 1.77% surge in the Indonesia Stock Exchange (IDX) Composite Stock Price Index (IHSG), which climbed 122.9 points to close at 7,079.56, following a Bank Indonesia rate cut of 25 basis points to 5.75%.

The rally was led by strong gains in banking stocks, particularly state-owned lenders. PT Bank Rakyat Indonesia Tbk (BBRI) saw the highest net foreign inflow at Rp 429.13 billion, followed by PT Bank Mandiri Tbk (BMRI) with IDR 157.07 billion, and PT Bank Negara Indonesia Tbk (BBNI) with Rp 54.78 billion. Meanwhile, foreign investors sold shares of PT Bank Syariah Indonesia Tbk (BRIS) and PT Surya Citra Media Tbk (SCMA), leading to net outflows of Rp 32.22 billion and Rp 23.22 billion, respectively.

The IHSG's rise was fueled by a 3.12% jump in financial sector stocks, with the property, technology, and infrastructure sectors also posting solid gains. Key banking stocks led the charge: BBRI surged 7.63% to Rp 4,090, BMRI climbed 6.48% to Rp 5,750, and BBNI rose 6.78% to Rp 4,410. Shares of PT Bank Tabungan Negara Tbk (BBTN) gained 4.29%, while PT Bank Central Asia Tbk (BBCA) added 2.89% to reach Rp 9,800.

Several stocks reached their auto-reject upper limit, including PT Era Media Sejahtera Tbk (DOOH), which jumped 35% to Rp 81, and PT Citra Marga Nusaphala Persada Tbk (CMNP), which rose 24.89% to Rp 2,960. Other notable gainers included PT Raharja Energi Cepu Tbk (RATU) and PT Solusi Sinergi Digital Tbk (WIFI), both of which posted gains exceeding 24%.

While the IHSG rallied today, the market had faced a significant decline in the previous session, falling 0.86% to 6,956. Foreign investors recorded net sales of Rp 633.19 billion during that period, primarily driven by profit-taking in banking shares. Heavyweights like BBCA, BBRI, and BMRI were among the most sold.

The recent volatility underscores ongoing investor sensitivity to global financial developments and local market dynamics. The renewed strength in banking stocks and robust foreign inflows signal renewed confidence following the central bank’s rate cut, aimed at stimulating economic growth and stabilizing the rupiah.

With the IHSG posting its first significant gain in weeks and foreign investors showing renewed interest, market participants remain watchful of global economic conditions and local monetary policies. Analysts expect the banking sector to continue driving market momentum, supported by easing liquidity conditions and strong fundamentals.