US Stocks mostly rose in volatile trading on Tuesday, led by materials and financial shares. Once again, the market was treated to late-day volatility, this time with stocks closing at or near session highs after a wobbly session. Overnight, Federal Reserve Chairman Ben Bernanke said the U.S. economy seemed to have enough momentum to avoid a "double-dip" recession, giving support to domestic-oriented companies. The Dow Jones industrial average gained 123.49 points, or 1.26 percent, to 9,939.98.A top Federal Reserve official said on Tuesday high unemployment and low inflation justify holding benchmark interest rates ultra-low for "quite some time".
Indonesian shares climbed 1 percent on Tuesday while most Southeast Asian stocks ended mixed as energy and resource shares recouped recent losses. Singapore and Thailand ended off their day's highs, edging down 0.2 percent and 0.3 percent respectively. Malaysia .KLSE was up 0.15 percent, the Philippines was 0.3 percent higher and Vietnam inched up 0.06 percent.
Indonesia, Asia's second best performer, trades at a 12-month forward price to earnings of 13.1 times, the highest in the region, ahead of Malaysia's 13.0, Singapore's 12.4, the Philippines' 11.9, Vietnam's 10.8 and Thailand's 10.3, ( Thomson Reuters Starmine).
“Yes, I’m worries that Indonesia would be affected by the European debt crisis, which might entail a reduction in the financing activities of European and U.S. banks. The deterioration in investment sentiment as a result of troubles in Europe could trigger a repatriation of foreign capital back to investors' home countries, which would adversely impact Asian assets held by foreign investors.”
But on the other hand, I think China is "not as bad as people think". Its middle class, along with India's, is growing rapidly. Even Federal Reserve Chairman Ben Bernanke blessed the US economy this week when he said a double-dip recession is not in the cards.
Yes, there is risk of losing money short term, so the strategy is to be prudent, stay diversified and look for accidental high-yielders.
I do not think we will come anywhere near low last month where we were in the dark old days. I think the negativity and pessimism about the markets is overblown. There's just too much good, too many opportunities and too many things going right to see those levels again.
“Highly Recommend to accumulate Metal (INCO, TINS), Coal/Energy (PTBA, BUMI, ADRO, PGAS) and CPO (SGRO, BWPT, LSIP)for Mid Investment, that I believe will have good result for 2Q10.”
Bang Juntri
DISCLAIMER: This report is issued by Bang Juntri. Although the contents of this document may represent the personal opinion of Bang Juntri. We cannot guarantee its accuracy and completeness.
