The impact of the Fed’s interest rate hike on the world economy. One that has felt the impact is banking stocks.
This came from the decision of The Federal Reserve (The Fed), raising the benchmark interest rate by 50 basis points (bps). The decision is actually a breath of fresh air for the shares of listed banking companies.
The increase in interest rates will have an impact on increasing lending and deposit rates. Potential increase in revenue and net profit of bank issuers.
It even seems clear that banking issuers will benefit from this. The Federal Reserve System is the central bank of the United States that influences the world economy.
So when something new happens, the impact of the Fed’s interest rate hike is felt. When interest rates rise, it will encourage higher bond yields.
Until finally making mortgage interest rates to be high as well. When the Fed signals a rate hike early on, the impact on the 10-year Treasury moves higher.
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The Impact of the Fed’s Interest Rate Increase on the Economy
May 2022 dividend distribution season continues. This season, market players are paying more attention to external factors, especially the impact of rising US banking interest rates.
While the Indonesia Stock Exchange has a long holiday for Eid al-Fitr, there are still several issuers who schedule the distribution of dividends this month.
It is estimated that there are still 8 issuers that have dividend rights at the end of stock trading. The schedule comes next week.
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There are several lists of stocks that have dividend rights from the impact of the Fed’s interest rate increase, including:
- PT XL Axiata Tbk (EXCL)
- PT Avia Avian Tbk (AVIA)
- Prima Andalan Mandiri Tbk (MCOL)
- PT Saratoga Investama Sedaya Tbk (SRTG)
- Company PT Ifishdeco Tbk (IFSH)
- PT Dharma Polimetal Tbk (DRAMA)
- PT Bank BTPN Syariah Tbk (BTPS)
- Dayamitra Telecommunication Company Tbk (MTEL)
The distribution of stock dividends will provide positive sentiment in the short term. In addition, consistent stocks will be interesting to collect.
Especially for investors who are looking for instruments for the long term. Selecting some of these stocks becomes his recommendation.
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Fresh Wind for Banking Issuers
The impact of the increase in interest rates is indeed quite felt by the issuers of banking. This will have an impact on increasing the profits of Indonesian banks.
Moreover, for credit interest rates have also increased. Increasing interest rates is something that can be done.
This will help several stocks engaged in transportation, banking, logistics, and energy.
For the bank’s own stock will experience a correction. The correction that occurs will be useful for entry, reflecting on the profit growth of banking issuers in the first quarter of 2022 from the impact of the Fed’s interest rate hike.