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).

Rabu, 06 November 2013

Morning Dew - November 7th 2013

Key Points


Rudderless
  • Lack of new significant catalysts will steer the market into gains and losses, ahead of the release of the Nonfarm payrolls data for October. Still, reaction could be limited as the data will be somewhat distorted by the impact of the recent government shutdown.
  • 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.
Awaiting Payrolls
  • US leading indicators was up 0.7% in September, better than the expected 0.6% gains.
  • US GDP is seen at 2% annualized rate in the 3Q13, against to 2.5% in 2Q13, while nonfarm payrolls data is set to be released on Friday. Consensus calls for an addition of 120k jobs in October after a 148k gains in September. Jobless rate is seen steady at 7.3%.

Technically Speaking...
  • JCI’s outlook remains cloudy as the index stays below its EMA band at 4,470.
  • 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 with the MACD continued to push deeper into the negative area. Wednesday’s rise however, was accompanied by a pick-up in volume, a sign that we may see a rebound in Thursday’s session.
  • SMRA found its entry price and thus the recommendation has started.

Day Ahead

Ahead of the release of nonfarm payrolls data on Friday the market is likely to fluctuate between gains and losses, unless a significant positive catalyst pops out. Domestically, earnings season will continue to set individual path of related stocks. Positive US session hinted for an uptick.


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