Analysts Optimistic on BMRI Stock Following Buyback Announcement

Positive Market Reaction Expected

The planned share buyback by PT Bank Mandiri (Persero) Tbk (BMRI) is anticipated to act as a catalyst for its stock price. Maximilianus Nico Demus, Associate Director at Pilarmas Investindo Sekuritas, believes this move reflects management's confidence in the company's strong fundamentals and long-term growth prospects in the national banking sector. The buyback plan, worth Rp1.17 trillion, was approved during the Annual General Meeting of Shareholders on March 25, 2025, with execution to be completed within 12 months.

Supporting Market Sentiment

The buyback coincides with several positive developments in the financial sector. These include the beginning of a declining interest rate trend, stable consumer spending, and easing geopolitical tensions between the United States and China. According to Nico, these factors will further enhance the attractiveness of banking stocks. However, he emphasized that the buyback must be accompanied by healthy financial fundamentals and a genuine recovery in financial performance to ensure sustainable stock price growth.

Strategic Implications of Buyback

Nico highlighted that the buyback is not only a strategy to maintain stock price stability but also a demonstration of management's confidence in the company's long-term value. The market is currently showing interest in BMRI and other banking stocks planning similar buybacks. This momentum, combined with positive financial sector sentiments, is expected to drive investor interest in banking stocks.