Apr 30, 2012

Stock recommendations & corporate news

Wall Street posted a solid performance this week, with the major market averages all rallying more than 1% after several big-name companies posted solid quarterly results.
The Dow Jones Industrial Average, as quoted by Foxbusiness.com, rose 23.7 points, or 0.18%, to 13228, the S&P 500 gained 3.4 points, or 0.24%, to 1403 and the Nasdaq Composite climbed 18.6 points, or 0.61%, to 3069.  For the week, the Nasdaq jumped 2.3%, the the S&P 500 tacked on 1.8% and the Dow added 1.5%. Indeed, it was the best week for the Nasdaq since early February. The telecom sector performed the best overall, followed consumer discretionary and information technology shares.
On the day, market participants had two key economic reports and earnings from three Dow components to digest.
The annualized pace of expansion for the world's biggest economy came in at 2.2% in the first quarter of 2012, slower than the 3% registered in the final three months of last year, according to a preliminary reading by the Commerce Department. Economists were looking for an increase 2.5%. Consumer spending, housing investment and exports all picked up steam during the quarter. However, the gains were offset by the first drop in business investment since the last quarter of 2009, continued contraction in government spending and a pick up in imports.
"The US economy remains a bright light in the global economy, although the light is hardly blinding, and also showing some signs of fading," Chris Williamson, chief economist at Markit wrote in an e-mail. Williamson warned, however, that the weakness in business investment "serves as a reminder that business remain wary of expansion, given the uncertain economic outlook."
How about Indonesia stock market today? Bisnis Indonesia provides recommendations:

Panin Sekuritas:
Jakarta Composite Index (JCI) today may move within the support-resistance level of 4,120-4,190. Top picks: TLKM,GIAA, BMRI, and AISA.
 
Sinarmas Sekuritas:
Technically, the JCI today may move in mixed with uptrend possibility within the range of 4,150-4,193. Several stocks for day trading: RALS, MAPI, ISAT, and ASRI.

e-Trading Securities:
Today, the JCI may move within the range of 4,130-4,201. On Friday last week, the JCI fell 16 points to 4,163.98.

Corporate news:

Kontan daily:
  • Coal miner PT Adaro Energy Tbk (ADRO) will pay US$78 million installment this year. "We are committed to pay debt installments on schedule," said Finance Director David Tendian.
  • Property developer PT Metropolitan Land Tbk (MTLA) has provided Rp200 billion to acquire land of 200 hectares-300 hectares in Jakarta, Bogor, Depok, Tangerang, and Bekasi. "We are scouting several locations. We will inform when we reach agreement," said President Director Nanda Wijaya.
 Bisnis Indonesia:
  • The state-controlled pharmaceutical company PT Indofarma Tbk (INAF) is reported to have awkward numbers. According to the financial statement last year, the spread between assets and liabilities of Rp203.29 billion surpassed the accumulated loss of quasi reorganization held in September last year worth Rp57.66 billion. Hence, Indofarma's net profit should be taxation object of 10% or Rp20.3 billion. In fact, Indofarma has not declared the taxation object.
  • Retailer PT Hero Supermarket Tbk (HERO) posted Rp2.33 trillion revenue in the first 3 months of this year, a 20.15% increase from the same period last year of Rp1.94 trillion.
  • Auto distributor and assembler PT Indomobil Sukses Internasional Tbk (IMAS), that is controlled by Salim family, plans to boost its capital expenditure this year to Rp800 billion-Rp1 trillion from Rp599 billion last year.

Disclosure: No position at the stock mentioned above.

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