Correction over, time for the bears to step over
Correction time over, bull time starts: We look at the recent massive 3 day correction in the index which drove us down from a high of 5.481 to a low 5.060 in only 3 days to be overdone and put in our rearview mirror, giving way to consolidation phase started by the bull camp coming out of the woodwork and snapping bargains in severely corrected big cap index drivers and second liner items. Thus recommend building positions in a more intensive and aggressive manner.
Foreign sells, buy again: The recent heavy foreign selling which had sparked local panic selling has ceased, with foreigners buying back on a drop of a hat stocks which they had sold like there was no tomorrow a couple of days before, such a reversal in taking a stance towards the market directional probabilities could spark an upward retracement for taking out near resistance at 5.270-5.350-5.450.
Stock picks & 1-week targets: (BUY: ASII, TLKM, BSDE, BBRI)
1. Astra International (ASII) (BUY) (Trading target: Rp.8.250-8.350)
Entry buy (1) Rp.7.825, Entry buy (2) Rp.7.725, Cut loss point: Rp.7.575
2. Telekomunikasi (TLKM) (BUY) (Trading target: Rp.4.200)
Entry (1) Rp.3.950, Entry (2) Rp.3.850, Cut-loss point: Rp.3.750
3. Bumi Serpong Damai (BSDE) (BUY) (Trading target Rp.2.100)
Entry: (1) Rp.1.825, Entry (2) Rp.1.775, Cut loss point Rp.1.715
4. Bank BRI (BBRI) (BUY): (Trading target Rp.11.950-12.400)
Entry: (1) Rp.11.425, Entry (2) Rp.10.325 Cut loss point Rp.10.225
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Yuganur Wijanarko Senior Research (yuganur.wijanarko@kgi.com)
