Morning Dew - 28 March 2014

Taking A Pause

Global stocks took a pause as lack of fresh catalysts led to muted trading sessions.

Domestic indexes finished slightly down while European indexes ended mixed with DAX gained but FTSE fell slightly. The Dow ended slightly lower overnight.

Indonesian household consumption is seen growing 5.6% (yoy) in 1H14, according to DBS Bank. Legislative election which is scheduled to be held on April 9th 2014 is cited as the main reason behind the accelerated consumption. On GDP, DBS Bank forecast growth at about six percent this year, higher than BI’s forecast which stands between 5.5% to 5.9%. Last year, the economy grew by 5.78%.

The curtain is closing on the earnings season this week. Stocks may move individually as more companies will report their 2013 financial results.

USDIDR inched higher to 11,438 from 11,408 on Thursday.

BKSL, ROTI

BKSL’s net profit soared 185% in 2013 to IDR630,229 million as revenues gained 54.49% to IDR961,988 million. Assets and liabilities also saw significant jump by 73.31% and 183%, respectively. EPS for 2013 stood at IDR20 vs. IDR7 a year earlier. 

ROTI’s net profit increased 5.94% in 2013 to IDR158,015 million while EPS stood at IDR31.22 in 2013 vs. IDR29.47 a year earlier. Assets and liabilities at the end of 2013 were 51.27% and 92.32% higher compared to a year earlier.

Technically Speaking...

JCI continued to struggle on Thursday but so far managed to hold its ground above 4,700.

Recent peak-turned-support at 4,661 will be the next line of defense where this level was also the prior resistance-turned-support.

As the index fell, the nearest resistance shifts to 4,802, while the next one is seen at 4,917, ahead of 5,000 which is the psychological resistance and subsequently the projection target at 5,063. 

Volume started to kick up, while MACD remains negative. RSI has curled down some more as price sagged.

Day Ahead

Barely any significant fresh catalysts out there will lead the market into conundrum. Overall, the JCI may end March with a listless day while today will also see strong flow of financial reporting as earnings season close to an end this week.

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