Market View - August 25, 2009

Asian markets rose more than 1% yesterday after a positive surprising existing home sales that rose 7.16% in July to 5.24 millions and a comment by the Federal Reserve Chairman Ben S. Bernanke that the global economy was beginning to emerge from recession. Markets also anticipate US consumer confidence to rise to 48 in August and new home sales to rise 1.56% in July to 390,000 units. Hangseng climbed 1.67% (+336.92 pts) to 20,535, Shanghai was up 1.10% (+32.66 pts) to 2,993 and Nikkei surged 3.35% (+342.85 pts) to 10,581. JCI added 1.79% (+41.97 pts) gains to 2,375 led by commodities shares.                                                                                                               Most US markets fell slightly yesterday led by financial companies and profits taking by investors. S&P 500 slid 0.05% (-0.56 pts) to 1,025 while DJIA was up 0.03% (+3.32 pts) to 9,509. Technical indicators started signaling a rebound on JCI. Stochastic increased and JCI yesterday managed to closed above MA20. MACD histogram though still below zero line but it increased gradualy. Our range for JCI today is 2,347 to 2,391. Our picks are Telekomunikasi Indonesia (TLKM, Buy, R-8,800, S-8,100), Indofood (INDF, Buy, R-2,850, S-2,350), Astra International (ASII, Buy, R-32,000, S-28,000), Tambang Batubara Bukit Asam(PTBA, Buy, R-14,800, S-12,800) and United Tractors (UNTR, Buy, R-14,500, S-13,000).