Bull and Bear slinging it out
A tug of war: We look at the recent selling by the bear camp during the week had failed to exert enough selling pressure and send the index to correct below the crucial support low of 5.370, thus it seems that the bull camp may be slowly getting the upper hand in slinging it out with bears unloading money off the table to expect lower levels near term. Nevertheless, we recommend building a continuous steady flow of long positions in big cap index and second liner stocks which we deem technically attractive with near to medium term potential to generate some nice upside fireworks propelling the index to resistance at 5.470 and all time high of 5.525, provided we can get 5.430 out of our rear-view mirror.
Correction and consolidations as a buying opportunity: We continue recommend buying in big cap index drivers and second liner items if any form of correction or consolidation events occur in the near term future to catch the next wave which will be a decisive breakout versus breakdown.
Stock picks & 1-week targets: (BUY: ASII, TLKM, BSDE, BJTM)
1. Astra International (ASII) (BUY) (Trading target: Rp.8.450)
Entry buy (1) Rp.8.175, Entry buy (2) Rp.8.075, Cut loss point: Rp.7.975
2. Telekomunikasi (TLKM) (BUY) (Trading target: Rp.4.400)
Entry (1) Rp.4.210, Entry (2) Rp.4.175, Cut-loss point: Rp.4.095
3. Bumi Serpong Damai (BSDE) (BUY) (Trading target Rp.2.350)
Entry: (1) Rp.2.170, Entry (2) Rp.2.110, Cut loss point Rp.2.085
4. Bank Jatim (BJTM) (BUY): (Trading target Rp.600)
Entry: (1) Rp.540, Entry (2) Rp.520, Cut loss point Rp.495
Disclaimer on: This document has been prepared by PT.KGI Sekuritas Indonesia. The information has been compiled from public source, which we believe to be reliable but no representation or warranty, express or implied is made as to accuracy, completeness or fairness of the information and opinions contained in this document. Information and opinion contained herein are used to assist recipients, but are not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipients as of this date. Any opinion and expressed in this report are subject to change without notice and PT. KGI Sekuritas Indonesia is not under obligation to update or keep current the information contained herein. This report is not, and should not be construed as, an offer or solicitation to buy or to sell any securities. PT. KGI Sekuritas Indonesia accepts no liabilities whatsoever for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement or omission in any information contained in this report. No part of this report may be produced, distributed or published without the written permission of PT. KGI Sekuritas Indonesia. All rights reserved
Yuganur Wijanarko Senior Research (yuganur.wijanarko@kgi.com)
