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8/21/11

First Asia Capital: Investor Buru Low-Risk Assets?

First Asia Capital - detikFinanceJakarta - Trade shares dominated yesterday amid investor buying the correction that occurred in several Asian bourses. JCI moving in positive territory, managed to close above the psychological level of 4000, namely at 4020.994, rose 67.717 points (1.71%). JCI movement is likely contrary to what was experienced in several Asian bourses are likely to weaken.Leading shares such as ASII, TLKM, PGAS, BMRI, UNVR and BBRI into motor reinforcement index.


Market participants assess the prospects for Indonesia's economy is still positive growth this year, in contrast to what happens in the U.S. and Europe. As known in recent years, many market participants feared a return of economic crisis, following the economic slowdown and debt problems that occur in the U.S. and the EU.
Asian economies which are still relatively strong, is not likely to face the risk of a slowdown as well, especially countries whose economies rely on U.S. and European markets, like Singapore, Japan, and Hong Kong. Indonesia has so far been relatively strong economy withstand the turmoil in the U.S. and Europe.Indonesia's economy is based on more sustained consumption levels of society.
Meanwhile, global stock markets last night again marked by turmoil in the U.S. DJIA index plunging to 3.7% and stock indexes in a number of EU countries, such as London's FTSE fell 4.5%, France's CAC-40 index down 5.5% and Germany's DAX index fell 5.8%. In commodity markets, crude oil prices in New York last night fell nearly 6% to close at USD82, 38/barrel. While the price of gold soared to its highest level at USD1818, 90/t.oz.
Market participants back to avoid riskier assets and more hunting valued assets such as precious metals risk free. This was mainly triggered by the release of a number of U.S. economic data are below market expectations. Figures jobless claims rose last week reached 408 thousand applications 9000 applications, over the previous market estimates of 400,000.Figures home sales (existing home) last July in the U.S. fell 3.5% from the previous month.
Business activity index fell to minus 30.7 from positive 3.2 (June), far below economists' forecasts of 3.7 previously. Poor U.S. economic data strengthened the fears of an economic crisis in the U.S.. Morgan Stanley also warned the U.S. and European economies on the verge of crisis.
With a number of developments are less encouraging, the stock trades today are expected to be affected. JCI is expected to move in a relatively wide range around 60 points with a tendency to weaken. JCI resistance level at 4050 and support seen at 3960.
Note:Buy BNBR 68-72; Stop loss 66EARTH 2650-2825 Trading Buy7400-7800 TLKM Trading Buy2000-2100 SMCB BuyINTP 15100-157000 Sell on Strength9100-9600 SMGR Buy400-420 UNSP Sell on Strength3300-3500 PGAS Maintain Buy520-600 Brau Maintain Buy
Source: detikFinance
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