DISCLAIMER

This research report is prepared by PT MINNA PADI INVESTAMA Tbk for information purposes only and are not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities or other financial instruments. The report has been prepared without regard to individual financial circumstance, need or objective of person to receive it. The securities discussed in this report may not be suitable for all investors. The appropriateness of any particular investment or strategy whether opined on or referred to in this report or otherwise will depend on an investor’s individual circumstance and objective and should be independently evaluated and confirmed by such investor, and, if appropriate, with his professional advisers independently before adoption or implementation (either as is or varied).

Selasa, 05 November 2013

Morning Dew - November 6th 2013

Key Points


Ill Omen
  • Reduced growth forecast for Europe has weighed on the market sentiment even as the service sector showed improvements in US and China.
  • Individual performance of stocks will find cues from the continued releases of earnings.
  • Expectations of Fed tapering seems to be taking a backseat for now. For now, there is no strong case for a tapering to start this year. Most likely after another budget debate early next year.
Service Sector Improved
  • US ISM index for service sector was reportedly up to 55.4 in the same month from 54.4 a month earlier as well as beating the consensus of 54.0.
  • China also saw an uptick in its service sector as reported by HSBC/Markit. The index was up from 52.4 to 52.6.
  • Unfortunately, European Union slashed the euro-area growth forecast for 2014 to 1.1% against its prior forecast of 1.2%. Unemployment is expected at 12.2% in 2014, up from 12.1%.  

Technically Speaking...
  • JCI slipped back below its EMA band at 4,470, setting a grim outlook for the index.
  • The loss of the EMA support at 4,470 had switched its role back to resistance. Key support now lies at 4,313/4,314, followed by 4,207.
  • Outlook turned negative as the price slipped below 4,470, MACD continued to push deeper into the negative area despite a diminishing volume spotted.
  • We have added SMRA into the recommendation pool. The stock aims at 1,250 while risking a drop below 880. Entry area is set around 1,010-1,030.

Day Ahead

Unfavorable US session pointed at more downside on Wednesday. Ahead of the release of nonfarm payrolls data on Friday the market is likely to drift lower unless a significant positive catalyst pops out. Domestically, earnings season will continue to set individual path of related stocks.


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