A Cup of Tea 18 March'10

Stocks gained on Wednesday, pushing the Dow to a 17-month high, after a benign February inflation reading supported the Federal Reserve's renewed pledge of low interest rates.

The Organization of Petroleum Exporting Countries, content with prices over $80 a barrel, has no need to change output at a meeting in Vienna later today, even with oil supplies exceeding consumption, ministers said. Oil rose for a second day to $82.30 a barrel on the New York Mercantile Exchange at 8:16 a.m. Vienna time.

In London, nickel climbed as much as 1.8 percent to $22,284 a ton and tin advanced 0.7 percent to $17,675 a ton. Crude palm oil futures on Malaysia’s derivatives exchange ended higher Wednesday tracking positive crude oil and soy oil futures in after-hours trade.

Indonesian stocks rose, driving the benchmark index to two-year high, as overseas investors sought riskier assets after the U.S. The Jakarta Composite index rose 3.3 percent to 2,756.26, the highest close since Feb. 28, 2008. The rupiah rose 0.7 percent to 9,115 against the dollar, the highest level since August 2008.

For today I think we still have a positive momentum and our market will be open slightly positive and will at range 2704-2785. Inflow still healthy, foreign fund continue coming both stock market and SBI.

BBCA rose on expectations 2009 earnings will be strong, leading to a dividend payout. What a surprise the share up 12% yesterday. I do not know but on my opinion this share was very expensive vs their sector. Still like BBRI and BMRI for growth.

PGAS rose 4.3 percent after Standard & Poor’s raised the company’s rating by one notch to BB with a positive outlook. And speculation that gas price will up at 7-8 dlr. I do not know but on my opinion at this level PGAS at 17.5xPE’10, this is not cheap.

Overall I still have positive view on our market for year end. But for shorter play we must more carefully and wise. I think nothing wrong if we put some cash on our portfolios at this time. I still go 3000 level for our JCI index until year end. TLKM and BUMI will be a trigger for next.

My View on:
• TLKM, ISAT, PGAS, INCO,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

Stay Cash for Healthy You Heart ^_^

Bang Juntri