Indonesian stocks are poised to rally to begin the first trading day in 2011 today. Bisnis.com today reported stock recommendations:
The brokerage sees possibility for Jakarta Composite Index (JCI) to run between 3,684-3,719, with recommended shares like BBNI, KLBF and UNTR.
Last week, although it was closed in green area, the index moved rather slowly and booked thin gain of 0.1%. The mixed sentiment at regional markets during quiet week and thin transactions slowed down the index. The market players, the securities company said, is suggested to closely monitor extended pressures on the index as Stochastic indicated overbought.
It predicts the index to move between 3,656-3,741 with recommended shares like KLBF, LSIP, UNTR and PTPP.
On Thursday last week, which was the latest trading day in 2010, JCI strengthened by 4 points (0.11%) to 3,703.51. The transactions however were not as many as usual with IDR3.9 trillion and 7.3 million in volume. Foreign net buy reached IDR137,5 billion.
Technically, the index is still in consolidation area as the last position was in the middle of bollinger indicator with limited volume(under SMA20).
The securities company sees possibility for the index to rally in the beginning of trading day this year as seen from the last position of the index where SMA5 line has crossed over SMA60 and is poised to cross over SMA20 line.
Sinar Mas Sekuritas:
On last Thursday, JCI advanced 0.11% to 3,703.51. JCI today is estimated to be mixed and have possibility for correction at 3,678-3,783.
With Bank Indonesia's new regulation for bank to jack up minimum requirements, it would create a negative catalyst in the market. Top picks are BBNI, INDF, and BSDE.
Disclosure: No position at the stock mentioned above.
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