Negative sentiment priced in
Priced in the charts: We look at the recent second round of selling by nervous bear camp which had corrected the index from 5.200 to a low of 5.080, thus delaying our rally scenario on weaker currency and equity global markets to be pricing in the existing negative sentiment out there, such as low GDP growth for 2016 (5% versus 6% expected by bulls) and adjusting of risky emerging market assets in anticipation of future fed hike.
Market forward looking ahead: In reality stock markets and market players are always forward looking and not susceptible to minor deviations within the major trend so we look at most of the negative sentiment surround the IDX to be price in the charts and put back in the rear-view mirror, thus recommend accumulating positions in big cap index drivers and second liner items.
Stock picks & 1-week targets: (BUY: ASII, TLKM, BBTN, BMRI)
1. Astra International (ASII) (BUY) (Trading target: Rp.7.850-7.950)
Entry buy (1) Rp.7.525, Entry buy (2) Rp.7.475, Cut loss point: Rp.7.375
2. Telekomunikasi (TLKM) (BUY) (Trading target: Rp.4.050)
Entry (1) Rp.3.810, Entry (2) Rp.3.720, Cut-loss point: Rp.3.650
3. Bank BTN (BBTN) (BUY) (Trading target Rp.1.800)
Entry: (1) Rp.1.625, Entry (2) Rp.1.575, Cut loss point Rp.1.515
4. Bank Mandiri (BMRI) (BUY): (Trading target Rp.10.500-10.900)
Entry: (1) Rp.10.025, Entry (2) Rp.9.925 Cut loss point Rp.9.825
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Yuganur Wijanarko Senior Research (yuganur.wijanarko@kgi.com)
