Bull recovery continues
Sentiment improving on macro and political front: Investors are still bullish on Indonesia and surprised to learn that nearly half of the tax amnesty declarations were in cash and liquid assets. With 70% being domestic declaration, we view a sizeable multiplier effect which may spill over to the stock and bond markets local wise with longer term effect in businesses, property or other financial assets.
Political situation safe and clear: Thus we view that in terms of politics, foreign and domestic investors were glad that the government is in control of the security situation in lieu of recent protest occurring in the capital. It seems that some of the foreign selling which had occurred has reversed into steady foreign inflows of net buying in big cap index drivers and second liners, we recommend building position for the next wave up.
Stock picks & 1-week targets: (BUY: ASII, TLKM, BSDE, BJTM)
1. Astra International (ASII) (BUY) (Trading target: Rp.7.950-8.050)
Entry buy (1) Rp.7.675, Entry buy (2) Rp.7.575, Cut loss point: Rp.7.475
2. Telekomunikasi (TLKM) (BUY) (Trading target: Rp.4.050-4.150)
Entry (1) Rp.3.840, Entry (2) Rp.3.790, Cut-loss point: Rp.3.690
3. Bumi Serpong Damai (BSDE) (BUY) (Trading target Rp.1.900)
Entry: (1) Rp.1.725, Entry (2) Rp.1.675, Cut loss point Rp.1.625
4. Bank Jatim (BJTM) (BUY): (Trading target Rp.550-600)
Entry: (1) Rp.515, Entry (2) Rp.495, Cut loss point Rp.487
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Yuganur Wijanarko Senior Research (yuganur.wijanarko@kgi.com)
