Market Overview

Today’s Range : 1567-1617

First session laughing but crying at second session. That’s what happen last Friday which JCI move strong to its highest at 1609, yet profit taking showed up on second session which drove JCI to its lowest 1576. However, JCI finally closed at 1591, down 1.36 points. IDX trading value last Friday up 15.6% comparing to the day before, as much as Rp 2.9 trillion. Bakrie’s stocks move in positive territory except for BNBR. But the most winners were CPO related stocks like AALI, LSIP, SGRO.

Last week DJIA was down 0,70% which open on Monday (20/4) at 8128 and closed on Friday (24/4) at 8070. Meanwhile, JCI for the same week down about 2.63% (open at 1634 & closed at 1591). While at US market the main forces are corporate quarterly result and banking concern, in Indonesia market the main force is the political stability. The ‘divorce’ between Partai Demokrat & Partai Golkar concern investors.

Today we expect to see JCI range in a positive territory with a 1567-1617 range. Mark Mobius of Templeton Asset Management comment about Thailand market as undervalued and its political issue is not so great would become a positive drive for regional and hopefully our market. Our top picks for today are INDF, KLBF, SGRO, AALI, ADRO


Today’s Top Picks

INDF – Buy
Target Price :1290 Resistance : 1290
Cut Loss :900 Support : 1160

Last Friday INDF closed strong, up 50 points (+4.2%) at 1250. This has reach our previous target price 1230. Strong CPO price we think boost INDF price moving up to its 1290 resistance. We still a short-term up trend ahead. We set our next target price at 1290 and up grade our support to 1160.


KLBF – Speculative Buy
Target Price :810 Resistance : 810
Cut Loss :610 Support : 750

KLBF closed at 800 up 30 points. This closing near our target price 810. We still see an up trend for KLBF. However, it has moved up near its resistance. So we expect there should be profit taking. But for mid-term horizon trading, we still recommend to accumulate KLBF.


SGRO – Buy
Target Price : 1830 Resistance : 1830
Cut Loss : 1120 Support : 1560

Together with other CPO stocks, SGRO last Friday closed strong, up 6.3% to 1700. We see SGRO has broken up its consolidation phase and try to move upward. We see 1560 as support. We still bullish on SGRO because of strong CPO price. Correction we should expect, yet this one is still on the way up. Buy SGRO for short or mid-term horizon.


AALI - Buy
Target Price : 16300 Resistance : 16300
Cut Loss : 11800 Support : 14600

Together with other CPO stocks, AALI last Friday closed up 5.3% at 15850. For today trading we still recommend AALI for both fundamentally & technically point of view. From fundamental, CPO price that keep moving up since Oct’08 gives good reason for buying AALI. From technical there’re several points. (1) AALI chart move in line with CPO chart; (2) AALI chart shows patterns that easily mark. Everytime price touch MA20 most likely the price going up. And if we look at Stochastic it’s in oversold area. With strong volume last week, we still bullish on AALI


ADRO - Buy
Target Price :1200 Resistance : 1000
Cut Loss :750 Support : 880
ADRO was proven cannot break its resistance at 1000 last week. After reaching high 1050 ADRO corrected into 1000. If we look at ADRO technical chart, this pattern is recognized very familiar. We still see an up trend movement for ADRO. Our trading target price still 1200. We believe ADRO will again try to break its resistance 1000.