Morning Dew - 19 September 2013

Key Points

• As the FOMC meeting enters its second and the last day, JCI tumbled 1.2% as investors move towards the sidelines. The fall took the index to as low as 4448.08 before it settled the day at 4463.25. Regional indexes such as Hang Seng and Nikkei also ended mixed. Mining stocks gained 1.39% while the consumer goods sector became the biggest loser of the day.
• The Fed jolted the markets as the FOMC decided to maintain its asset purchases at $85b. The Fed said that the decision to taper off some of the stimulus is largely depends on how good is the economy and that there is no set timetable for the Fed to start taking away the stimulus. The surprise had the stock market ralled, gold jumped as well as a rally in the treasury yield.
• Fed's decision to delay the reduction in the stimulus program could set the JCI to return to the 5k area. The delay may also hurt USD and thus, could help boost IDR. Support will remain at around 4200 while near-term the index will find support at 4289. Upside, the major resistance remained at 4563 and then 4779.
• No change in view on the recommended stocks. PGAS now the only one gaining while the others (ARNA, MDLN, LCGP and MLPL) are still in the red.

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