SVB's Fall Shakes Indonesian Stock Market

Jakarta Composite Index (JCI) closed 2.14 percent lower to 6,641.81 on Tuesday following the negative sentiment from the fallout of Silicon Valley Bank (SVB) and two other banks in the United States. This led to a selloff of banking and financial institution stocks, similar to the US stock market situation, causing investor concerns that spread to major bank stocks in Indonesia, putting pressure on the JCI.

According to RTI Infokom data, foreign investors offloaded shares on the Indonesia Stock Exchange (IDX) worth Rp 1.33 trillion on Tuesday's trading. As a result, domestic banking stocks, especially blue chips, experienced selling pressure. The most widely released by foreign investors were banking stocks.

Foreign investors sold shares of PT Bank Mandiri Tbk (BMRI) worth Rp 384.3 billion, PT Bank Central Asia Tbk (BBCA) worth Rp 360.6 billion, and PT Bank Rakyat Indonesia Tbk (BBRI) worth Rp 353 billion. These banks were among the top three lagging movers in the March 14 trading session.

Consequently, these big banks' share prices dropped significantly, with BMRI shares falling by 4.11 percent, BBCA shares by 2.63 percent, BBNI by 2.50 percent, and BBRI shares by 2.48 percent. Meanwhile, shares of digital bank PT Bank Jago Tbk (ARTO) touched the lower auto reject limit (ARB) after falling by 6.64 percent.