“Generally, boosting bank dividends is a good way to make the shares more attractive from an investor’s standpoint,” said Ken Wong, Asian equity portfolio specialist at Eastspring Investments.
Indonesian stocks jumped by the most in three weeks after higher-than-expected dividend payouts by the biggest state-owned banks helped pull investors back to the beleaguered market.
The benchmark Jakarta Composite Index (JCI) gained as much as 3.7% Wednesday, the most since Mar 3. PT Bank Central Asia, PT Bank Mandiri Persero and PT Bank Rakyat Indonesia Persero were the top contributors to the gauge’s rise.
