The AGMS Of Major Banks Will Raise The JCI To The Highest Record

JCI (Photo: Doc Antara)

JAKARTA - The Annual General Meeting of Shareholders (AGMS) of issuers big banks' this week is expected to support the Composite Stock Price Index (JCI). It even reaches a new All Time High (ATH).

Meanwhile, issuers of big banks will hold AGMS, including PT Bank Negara Indonesia Tbk (BBNI), PT Bank Mandiri Tbk (BMRI), and PT Bank Central Asia Tbk (BBCA), one of which is to discuss dividend distribution for the 2023 financial year.

Equity Analyst of PT Indo Premier Sekuritas (IPOT) Dimas Krisna Ramadhani estimates that this will be a positive catalyst for the index and what market players are waiting for regarding the distribution of dividends of big banks.

"The reason is, the increase in the JCI in the first two months in 2024 is supported by the financial sector and this is predicted to be a positive sentiment to again make the JCI rise and print a new All Time High (ATH)," said Dimas quoting Antara.

On Friday (01/03), PT Bank Rakyat Indonesia Tbk (BBRI) conducted an AGMS and agreed to distribute dividends of IDR 235 per share for the 2023 financial year, or equivalent to 80 percent dividend payout ratio (DPR).

In addition, he continued, during this week there will be sentiment from Fed Chairman Jerome Powell on Wednesday (06/03) and Thursday (07/03), who will convey his views on economic conditions and inflation that have occurred in the United States (US) over the past month.

"Market participants can anticipate what the Fed will do at the upcoming FOMC through Powell's views. Market participants hope that the inflation rate can be controlled by getting closer to the target of 2 percent, so that the benchmark interest rate can immediately drop and have a positive impact on the stock index," said Dimas.

The next sentiment is the US Non-Farm Payroll (NFP) data for the February 2023 period which will be released on Friday (08/03), which describes economic conditions and inflation rates in the US.

The consensus estimates that the NFP for the February 2024 period will have an additional 200 thousand workers, compared to the previous month's 353,000 additional workers or above the consensus of 180 thousand.

"Dual-edged knives, when labor data shows positive things with an additional number of workers impacting the rotation of the economy. On the other hand, if it cannot be controlled properly, it can make the inflation rate further away from the target set in 2024, which is 2 percent," said Dimas.