BRIS - Shares drop 4.01% as it officially becomes Indonesia's first sharia Gold Bank

BRIS - Shares drop 4.01% as it officially becomes Indonesia's first sharia Gold Bank The inauguration of Bank Syariah Indonesia (BRIS) as the nation's inaugural sharia gold bank, a landmark regulatory achievement sanctioned by the Otoritas Jasa Keuangan (OJK), was met with a paradoxical market response. Despite the strategic alignment with the government's "Asta Cita" initiative, aimed at bolstering domestic value through gold sector industrialization, BRIS shares experienced a notable 4.01% correction, concluding at IDR2,870 per share on Wednesday's trading session. The simultaneous launch of Pegadaian as a licensed gold bank, alongside BSI, suggests a broader sectoral shift, yet the market's reaction to BSI's specific announcement was demonstrably subdued. President Director Hery Gunardi's articulation of the gold bank's role as a catalyst for sustainable growth, anchored in Gold Custody and Trading, with future expansions into Financing and Storage, reflects a strategic vision. The integration of these services with BSI's existing gold ecosystem, encompassing Gold Pawn, Installment, and Digital Gold, and the impressive 17.5-ton managed gold portfolio, signals a comprehensive market penetration. (Source : Kontan) Comment : The stock price drop should be viewed in the context of broader market dynamics and investor behavior. BSI's establishment as a sharia gold bank is a significant achievement with strong potential for long-term growth. Maintain BUY, GGM-based TP of IDR3,670 (3.3x ‘25F PB), while currently trading at 2.7x ’25F PB or above its average historical mean of 2.4x.