Morning Dew - 13 September 2013

Key Points

• JCI edged higher on Thursday while two other indexes – LQ45 and IDX30 -  inched lower. Another 25 basis points of tightening was announced by Bank Indonesia ahead of the key FOMC meeting later this mid-September. Consumer goods sector fell the most (-2.71%) while agri and mining which were hammered during previous session managed to bounce higher. The market is expected to remain cautious ahead of the Fed meeting.
• US jobless claims released on Thursday was largely ignored as the reading might not be accurate enough due to computer systems upgrades in two states, resulting in fewer applications which got reported. On the Syrian issue, the proposal for Syria’s surrendering its chemical weapons is still about to be discussed between the US and Russia. US stocks finished slightly lower as markets continue to eye on the next FOMC meeting.
• Currently, the Fed is seen to reduce its bond buying each month by $10 billion to $75 billion. Still, what the market wants to know is no longer about whether the Fed will start to taper in September, but rather over how big is the cut.
• Among the recommended stocks, JPFA finally met its target price at 1300. Meanwhile, ARNA remains in the red for now. 

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