๐๐ก๐ ๐๐๐ ๐๐๐ฒ ๐๐, ๐๐๐๐
๐๐ซ๐๐๐ข๐ง๐ ๐ซ๐๐ง๐ ๐ :ย ๐,๐๐๐๐ฉ๐ญ – ๐,๐๐๐๐ฉ๐ญ (๐ฒ๐๐ฌ๐ญ๐๐ซ๐๐๐ฒ ๐๐ฅ๐จ๐ฌ๐ : ๐,๐๐๐๐ฉ๐ญ)
Morning,
The Jakarta Composite Index (JCI) today is expected to trade in a range of 5,860pt โ 5,950pt factoring in several issues. For domestic issue, Indonesia police seems to have been in controlled of significant mass protests which started following the official results of presidential election on May 21, 2019. This will facilitate the process of inauguration of ย Indonesia president and vice president who are backed by sufficient credibility. USDIDR exchange rate was at IDR14,488 at yesterday closing vs. IDR14,462 previously, while other macro indicators remain intact as for now.
We expect the JCI to be supported within 5,860pt today also factoring into account Wall Streetโs closing whereby the DJIA closed lower by 0,4%, and S&P 500 and Nasdaq by 0,3% and by 0,4% respectively, mostly on US-China prolonged trade jitters. At the other end, the US central bank chairman reiterated the commitment to keep a loose monetary policy which is expected to provide support.
At yesterday closing, Indonesia shares was trading at 16 times trailing earnings which we think not that solidly to have reached its bottom( 12x -14x ) for current uncertainties. After factoring in FY18 earnings results we keep the following recommendation both for trading and medium/long-term investing. ย AALI, LSIP (sector of ๐๐จ๐ณ๐ช, allocation suggestion ๐๐ฏ๐ฅ๐ฆ๐ณ๐ธ๐ฆ๐ช๐จ๐ฉ๐ต ), UNTR, ITMG, ADRO, PTBA (sector of ๐๐ฐ๐ข๐ญ ๐๐ช๐ฏ๐ช๐ฏ๐จ, allocation suggestion ๐๐ข๐ณ๐ฌ๐ฆ๐ต-๐ธ๐ฆ๐ช๐จ๐ฉ๐ต), GGRM, UNVR, ICBP (sector of ๐๐ฐ๐ฏ๐ด๐ถ๐ฎ๐ฆ๐ณ, allocation suggestion ๐๐ท๐ฆ๐ณ๐ธ๐ฆ๐ช๐จ๐ฉ๐ต ), ASII (sector of ๐๐ถ๐ต๐ฐ๐ฎ๐ข๐ต๐ช๐ท๐ฆ, allocation suggestion ๐๐ข๐ณ๐ฌ๐ฆ๐ต-๐ธ๐ฆ๐ช๐จ๐ฉ๐ต ), dan ACES, SCMA, MAPI (sector of ๐๐ณ๐ข๐ฅ๐ฆ, allocation suggestion ๐๐ท๐ฆ๐ณ๐ธ๐ฆ๐ช๐จ๐ฉ๐ต),and TKIM (sector of ๐๐ข๐ด๐ช๐ค ๐๐ฏ๐ฅ๐ถ๐ด๐ต๐ณ๐บ, allocation suggestion ๐๐ข๐ณ๐ฌ๐ฆ๐ต-๐ธ๐ฆ๐ช๐จ๐ฉ๐ต).
Cheers,