Morning Dew - 20 February 2014

On Track

JCI is on its track to hit 4,600 as the index finished up 0.8% to set the intraday high at 4,592. 

Some positive catalysts recently released were the improving CAD (hence lessened the odds that BI will raise rate again), the improving IDR, Bank of Japan’s continued stimulus, and Fed’s Janet Yellen’s statement that the tapering policy will continue on.

The market gave muted response to US producer inflation data released on Wednesday. DJIA ended down again as traders booked profit.

USDIDR inched higher from 11,826 to 11,850 per USD.

BBNI & BNII

BBNI’s net profit was up 28.51% in 2013, as its net income rose 23.28%. Assets and liabilities were up by 16.01% and 16.98%, respectively.  For 2014, the bank aims to see loan growth around 14-17%, LDR is aimed around 84-85%, up from 85.3% achieved in 2013.

BNII recorded a jump of 29.66% in net profit throughout 2013, even with its net interest income only increased by 9.17%. The bank’s assets grew 21.4% while its liabilities were up 20.77%.

Technically Speaking...

JCI is closing in to its resistance area around 4,610 as the Wednesday’s peak hit 4,592.

Recent peak-turned-support at 4,510 will be nearest support line for JCI, whereas the 200-day EMA at 4,440 will be the subsequent support area. 

Nearest resistance is seen at around 4,610 while 4,791 will be the next hurdle to crack should 4,610 gives way.

Volume was up while MACD continued to push up, maintaining the upside potential at the moment. For now, the outlook is biased to the upside although Wednesday’s firm gains could spell a near-term correction.

Day Ahead

Nothing new can lead to another doldrums this Thursday, especially after a firm push on Wednesday. Another Dow’s fall on Wednesday may actually lead to a correction. The earnings reports flow will continue while in the US the consumer inflation data is set for release.

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