Morning Dew - 25 July 2013

Key Points

• JCI's rally fizzled as it fell to end the Wednesday session at 4718.10. Poor manufacturing data from China torpedoed JCI's march towards its next objective at 4848. As support at 4740 has been taken out the next support is seen at 4677. This has been tested on Wednesday and it looks set to be challenged once more on Thursday. Below 4677 the index risk falling deeper towards 4582.
• Puradelta Lestari Tbk. set the range of its IPO price to 205-255 per share, reflecting a 50%-60% discount to its NAV. The property company is offering 10.84 billion shares at the most to the public and appointed Sinarmas Sekuritas and Macquarie as joint lead underwriters. The proceeds from the IPO is aimed at developing the infrastructures around its kota Deltamas Bekasi.
• ACES has its fill and ended at 750, up 4.17% so far. ASRI remains at the sideline as it continues to wait for entry. IMAS returns to red while BBCA is within spitting distance to its final destination at 10450.
• Poor China manufacturing data returned to spook investors. HSBC manufacturing PMI for July fell to 47.7 after it stood at 48.2 in June. Reading below 50 marks contraction while above 50 marks expansion.
• US stocks showed mixed results as the Dow and S&P 500 indexes slipped but the NASDAQ index was up slightly. Lack of major catalysts and muted response to China's data has set the expectation to the coming Thursday session back to neutral.

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