Looking at the IDX discounting a possible commodity boom?
Commodities stocks (hard and soft) as momentum play (Coal, CPO mining) : Fed rate hike on Dec 15 may be the start of a possible trump inflation scenario for a commodities experiencing a boom 2017 spurred by certainty that the US economy may be on the recovery track and that Fed should manage a more decisive policy which may bring certainty and closure to market players and remove future overhangs.
Riding the trump inflation: We look at the recent movement in markets and commodities such as CPO, coal, and metals to discount a scenario of a possible higher inflationary period in 2017 versus 2016, and given such scenario thus recommend buying big to medium caps in coal, precious metals (nickel and gold), CPO, and heavy equipment manufacturer which may be a good derivative and trading proxy to ride the sentiment.
Stock picks & 1-week targets: (BUY: PTBA, ANTM, LSIP, UNTR)
- PT. Bukit Asam (PTBA) (BUY) (Trading target: Rp.13.200-13.650)
Entry buy (1) Rp.12.725, Entry buy (2) Rp.12.625, Cut loss point: Rp.12.525
- Aneka Tambang (ANTM) (BUY) (Trading target: Rp.1.020)
Entry (1) Rp.970, Entry (2) Rp.950, Cut-loss point: Rp.930
- London Sumatra (LSIP) (BUY) (Trading target Rp.1.950-2.050)
Entry: (1) Rp.1.815, Entry (2) Rp.1.785, Cut loss point Rp.1.725
- United Tractors (UNTR) (BUY): (Trading target Rp.24.500)
Entry: (1) Rp.22.675, Entry (2) Rp.21.575, Cut loss point Rp.21.175
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) (kgi.id)
