Weekly setback but optimistic on the rebound
Correction capped upside: Although selling by the bear camp on regional volatility and currency weakening back above the 13.000 mark capped index upside from breaching the 5.410 resistance level, the subsequent correction was limited by daily oversold readings so it seems that the bears may not be firmly entrenched here and the recent setback may be only temporary and that we remain optimistic for a possible rebound in the short term back to 5.380-5.410 where a more positive stance can be maintained.
Correction and consolidations as a buying opportunity: We 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 of upside fireworks.
Stock picks & 1-week targets: (BUY: ASII, TLKM, BMRI, BSDE)
1. Astra International (ASII) (BUY) (Trading target: Rp.8.350)
Entry buy (1) Rp.8.125, Entry buy (2) Rp.8.075, Cut loss point: Rp.7.925
2. Telekomunikasi (TLKM) (BUY) (Trading target: Rp.4.350)
Entry (1) Rp.4.175, Entry (2) Rp.4.075, Cut-loss point: Rp.3.975
3. Bank Mandiri (BMRI) (BUY) (Trading target Rp.11.400)
Entry: (1) Rp.11.075, Entry (2) Rp.10.925, Cut loss point Rp.10.825
4. Bumi Serpong Damai (BSDE) (BUY): (Trading target Rp.2.300)
Entry: (1) Rp.2.140, Entry (2) Rp.2.110, Cut loss point Rp.1.975
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Yuganur Wijanarko Senior Research (yuganur.wijanarko@kgi.com)
