A Cup of Tea 17 March'10

Stocks rose to a fresh 17-month high on Tuesday after the Federal Reserve held benchmark rates near zero and maintained its pledge to keep them low for an extended period. The Dow Jones industrial average gained 43.83 points, or 0.41 percent, to end at 10,685.98.

Investors poured into Thailand on Tuesday, pushing Thai stocks to a two-month high on signs of waning anti-government protests and a bullish report by U.S. investment bank Morgan Stanley. In Singapore, the main index rose 0.77 percent, In Kuala Lumpur, the index fell for a fourth session, losing 0.06 percent, In the Philippines, a 2.9 percent gain in the country's largest power distributor, and Vietnam .VNI lost 3 percent to a one-week low.


Crude oil rose the most in four weeks as the dollar fell against the euro, buoying demand for commodities as an alternative investment, and as OPEC ministers indicated they would refrain from increasing output. Crude oil for April delivery raised $1.90 to settle at $81.70 a barrel on the New York Mercantile Exchange, its biggest increase since Feb. 16. Oil has advanced 73 percent in the past year. LME Nickel 21810.00 + 310.00 or up +1.44% year to date up 17.73%, Tin 17555.00 + 5.00 or up +0.03% year to date up 3.57%.

Crude palm oil futures on Malaysia’s derivatives exchange ended marginally lower in volatile trade Tuesday amid both long liquidation and fresh buying. There were concerns China may tighten its monetary policy to quell inflation, and a “rate hike could potentially be a dampener for CPO futures.


Stock prices still have room to rise further, and recent economic reports show there is less chance of a double-dip recession. The stock market is almost always a discounting mechanism that almost always moves in advance of the economy, but we don't think it has moved too far at this point. There are still many uncertainties one year after the bottom. We don’t yet know what the full impact of those will be.

Indonesian market will be move in positive territory for today. Healthy inflows still continue on to market and IDR will continuous to be strengthen. JSX will move within 2649-2696 level.

My View on:
• TLKM, ISAT, PGAS, INCO, ASII, ITMG, BMRI, BUMI with HOLD
• ADRO, BBRI, UNTR, ANTM, TINS, DOID with BUY
• BDMN, BBTN, PTBA, AALI, LSIP, CTRA, CTRS, BTEL, UNSP with Buy On Weakness
• ELTY, KIJA, ENRG with Speculative Buy
• BBCA, ASII with Neutral or Reduce

So what do we know now that we didn’t know then?

BANG JUNTRI