Indonesia banks Sector, Strongest to prevail, Credit Suisse

Weak sentiment, good timing. Currently, the sentiment on Indonesian bank

stocks appears soft—even for the large banks. Large banks’ variable rate

marketable security holdings during the current low government bond yield

environment suggest that 1Q12 results may be weak. For large banks, we

expect their 2H12 earnings to be stronger than 1H12’s, as we believe current

government bond yields may not be sustainable given: (1) inflation may have

troughed and (2) the current level of government bond yields reflects the

abnormal, yet temporary, demand after Indonesia was upgraded to investment

grade. Thus, we advise long-term investors to accumulate large banks.

Indonesian Bank, A Conversation with BI, CLSA

Given the regulatory issues currently overshadowing the Indonesian
banks, we held a conference call with the central bank (BI) to get more
color. Our conversation with Dr. Perry, a BI Director, confirmed that BI is
not targeting to lower NIM or profitability of banks. BI expects banks to
lower their lending rates in response to BI rate cuts. We are maintaining
our view on Indo banks and reiterate our Buy call on BBRI due to its high
NIM and ROAE.

Saham Pilihan Senin, 20 Februari 2012

BWPT : Muncul kembali indicator bullish parabolic sar diikuti oleh golden crossnya stochastic dan positifnya histogram mengindikasikan berlanjutnya tren penguatan.

Support    : S1  1.420    S2  1.380

Resisten   : R1  1.480    R2  1.540

Rekomendasi : Trading Buy