JAKARTA - President Director PT Bank SMBC Indonesia Tbk (BTPN), Henoch Munandar, has shared insights on the weakening banking stocks in recent weeks on Indonesia Stock Exchange (IDX).

According to Henoch, the downward trend in stock prices is primarily driven by market perceptions that have not yet fully optimised.

"If we look at recent conditions, when banking stocks were widely sold by foreign investors, leading to a drop in prices, it's most likely due to market perception," Henoch said during a gathering of SMBC Indonesia and its subsidiaries in Jakarta on Monday (10/3).

Henoch expects volatility in banking stocks to continue in the near future, as market sentiment has not yet fully recovered. However, fundamentally, Indonesia's banking sector continues to show strong performance, with consistent double-digit growth in both credit and profitability.

Furthermore, Henoch emphasised that Indonesian banks remain well-capitalised compared to the regional average. However, high investor expectations pose a unique challenge for the banking sector.

"Perhaps investors have become accustomed to double-digit growth. This is something market players need to pay attention to," he said.

Over the past five days, SMBC's stock price has risen by 3.48% to IDR 2,080 per share. However, in the first trading session today (11/3), the stock price declined by 0.48% as of 9.36 AM WIB. (DK/KR/ZH)