Additional stimulus from OJK will give more space for capital to the banking sector. The sector is facing liquidity challenges. On the other hand, government via the Committee for Financial System Stability will disburse stimulus package through intermediary or anchor banks in order to anticipate the tightening in liquidity. One aspect of OJK stimulus is to cut minimum LCR and NSFR for banks in BUKU III and IV category. Specifically, this will give liquidity support to Bank Rakyat Indonesia (BBRI) as one of BUKU IV category banks. Therefore, NHKSI recommends BBRI as this week’s stock pick with end of year Target Price of IDR 3.100 which represents a PBV of 1,6x

Weekly’s Top Stock Pick: BBRI
Support : 2085
Resistance : 3230

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