CIMB Strategy - Snapshot of January foreign fund flows

Market outlook
Strategy - Snapshot of January foreign fund flows - by Erwan Teguh
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Based on EPFR data, Indonesia enjoyed two consecutive months of net foreign fund inflows in Dec 08 and Jan 09, totalling US$95.3m, vs. a net outflow of US$496m in Jan 09 for emerging Asia. Astra International has toppled Telkom Indonesia for the top holding. On the other hand, after a significant run in Dec 08, banks have lost appeal. The biggest beneficiary appears to be PGAS, with BUMI suffering the most decline. No change in our index target of 1,530 which is bottom-up, implying 10.2x and 8.6x CY09-10 earnings, and a Neutral weighting. Top buys: TLKM, PGAS, ADRO, INTP, BMRI. Top sells: ASII, INDF, INCO