November windfall coming
Trump or Hillary wins, market gets certainty: Despite the daily dose of selling by look at the recent US election results next week where Donald Trump is in a tight race with Hillary to give positive sentiment into the market fueling more buying in big cap index driver and second liner stocks which should drive the next round of upside fireworks piercing yearly resistance at 5.470
New territory: We look at the recent month of October as a tug of war between bearish camp followers selling aggressively in anticipation of a further breakdown to 5.180 and the bull camp building long positions in big cap index drivers and second liner items resulting in a winning streak by the bulls keeping the index buoyant above 5.310. Thus it seems that we may look forward for a sweet November if we can move beyond 5.370 and 5.410 respectively and upside fireworks until 5.470 if not new territory at 5.525.
Monthly trend positive: From a technical standpoint, the index had opened up for the month of November higher than the previous month of October, and a breach above 5.470 or the yearly and monthly high should confirm that near to medium term upside may be more expected than downside
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, BMRI, MNCN
1. Astra International (ASII) (BUY) (Trading target: Rp.8.350-8450)
Entry buy (1) Rp.8.125, Entry buy (2) Rp.8.075, Cut loss point: Rp.7.975
2. Telekomunikasi (TLKM) (BUY) (Trading target: Rp.4.300)
Entry (1) Rp.4.180, Entry (2) Rp.4.090, Cut-loss point: Rp.43095
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. Multimedia Nusantara (MNCN) (BUY): (Trading target Rp.2.150)
Entry: (1) Rp.1.945, Entry (2) Rp.1.915 Cut loss point Rp.1.885
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)
