• Prime Bank

    • PT Pemeringkat Efek Indonesia (PEFINDO), in synergy with PT Bursa Efek Indonesia (BEI) or Indonesia Stock Exchange (IDX), launched a new index called "IDX-PEFINDO Prime Bank" (Code: PRIMBANK10). PEFINDO President Director, Irmawati Amran said that IDX-PEFINDO Prime Bank was developed with the support of synergy and credibility between PEFINDO and IDX. "IDX-PEFINDO Prime Bank offers a choice of shares with a measurable rating from PEFINDO and is a market driver in the banking sector," explained Irmawati. Irmawati added that the launch of IDX-PEFINDO Prime Bank is expected to become a reference and main choice for investing in the stock market with special exposure to the banking sector. Currently, IDX-PEFINDO Prime Bank is the only banking index that accommodates PEFINDO ratings as a basis for constituent selection.

      IDX-PEFINDO Prime Bank constituents were selected using credible criteria. As a universe, the index uses companies in the banking sector that issue shares (go public) and are rated by PEFINDO, either those that issue debt securities or simply rating companies. These banks are then screened using the following criteria:
      1. Rating Factor. The bank has an Investment Grade rating from PEFINDO (idAAA to idBBB-). Higher ratings have a higher chance of being selected. PEFINDO Rating Indicators reflect these banks' fundamental business and financial performance.
      2. Total Assets Factor. Banks with higher total assets are more likely to be selected as constituents. More considerable total assets indicate a larger business size and a better capacity to compete and generate profits.
      3. Liquidity Factor. Banks with higher liquidity have a higher chance of being selected. IDX-PEFINDO Prime Bank uses comprehensive criteria to measure liquidity, combining:
        • Number of days actively traded in IDX,
        • Daily average trading volume in IDX,
        • Daily average trading value in IDX,
        • Daily average trading frequency in IDX, and
        • Free float.
      4. Market Capitalization Factor. Banks with greater total market capitalization are more likely to be selected as constituents. A more considerable market capitalization value indicates that the stock was selected as a market mover for the banking sector index.
      5. Valuation Factor. IDX-PEFINDO Prime Bank uses price-to-earnings (P/E) and price-to-book (P/B) ratios to evaluate selected shares. This valuation factors P/E and P/B to determine which stocks are undervalued or overvalued relative to other stocks in the same sector.
      6. Legal Factor. We use information related to unusual market activity & suspensions in the last 1 year as a basis for evaluation. IDX-PEFINDO Prime Bank prioritizes selecting shares that are traded regularly, fairly, and efficiently and, therefore, does not have records of both types of information.