MARKET OUTLOOK Friday, November 23, 2007
Indonesia shares may continue to trade in a directionless mode amid an absence of fresh leads, with lingering concerns over high oil prices and weak rupiah weighing down overall sentiment. But, as happened yesterday, a local big fund may continue to support the main index to float above 2530 for investment maintenance. The central bank early next month (December 6) would likely keep its key interest rate unchanged at 8.25% to weather impacts from weak rupiah and limit inflationary pressure. Any surprise move of cutting the rate would be considered as a gift. The main index may go down and Up by 32 points. Main index: 2534-2604 R2: 2626 TLKM: 10,100-10,400. It must be stuck in this range for a temporary consolidation, with best buying remaining at any level below IDR9,950. Nothing much from the corporate side, but some officials at Telkom told me that the company is setting up a new investment plan for 2008, which includes plan of acquisition and expanding company's business to be more regional... ISAT: 8,200-8,900. Nine-month earnings came in very well on spot, beating most analysts forecast. KPPU's decision must make Indosat a target of acquisition by foreign companies. BUY on weakness BMRI: 3,250-3,475. Chart says it is oversold, with IDR3,200 has proven to a be a strong support. A 32.18% retrace at IDR3,625 may be tested within 12 sessions or so... PGAS: 15,700-16,400. Chart says it looks more than stable to hold the bullish trend intact. Buy at the lower end on the range as target of IDR19,000 would be faster than expected... ASII: 21,100-23,300 Profit taking may continue to fill in gap of between IDR21,600-21,900. Buy at the lower end of the range. Car sales have recovered gradually and may return normal next year amid hopes of lower interest rates environment. Talks over possible stock split are also heating the trading floor... ANTM: 4,250-4,500. London Metal Exchange base metals found some footing from the week's losses Thursday, except for LME lead and nickel, with conditions seen volatile until fresh direction emerges. LME nickel slipped to a fresh two-month low of $28,600 a metric ton. I am still with a BUY at the lower end of the range... BUMI: 4,000-4,500. It may remain in a consolidation mode and building volume. The 12-month target has been revised upward to IDR6,200 to confront with the company's robust business outlook. BUY on weakness or at any level below IDR4,000. SPECIAL MENTION: AGAIN: all shares in palm-oil related companies. CPO prices in the world market continue to rise. MONITORING: PTBA: 9,800-10,900 LSIP: 9,000-10,200 UNSP: 2,075-2,350 TBLA: 620-690 MEDC: 4900-5,600 CPRO: 440-540 buy ETWA: 390-450 MIRA: 500-740 spec buy Send instant messages to your online friends http://uk.messenger.yahoo.com
