Morning Dew - 5 March 2014

Cooling Down

Global rout took a pause on Tuesday after Russia ordered its troops to return to base, easing the tension in Ukraine for now. Still, with Vladimir Putin’s intent to protect Russian interests in Ukraine, risk of tensions to return remains on the table.

WIKA Beton is set for IPO as the shares of WIKA’s subsidiary is offered between 470-630 per share starting on Tuesday. WIKA Beton appointed Bahana Securities, Danareksa Securities, Mandiri Sekuritas and Sucorinvest Central Gani as its underwriters. The company that produces construction materials offers 2.04 billion shares which is equivalent to 23.47% of its enlarged equity. Listing is expected on April 3rd.

USDIDR bounced to 11,647 from 11,596 after a string of weaknesses.

HEXA and PLIN

HEXA reported its 3Q13 which ended in December 2013 as revenues plunged 28.12% to US$342,802k while net profit shrunk to US$16,913k from US$48,613k or down 65.21%. Assets were down slightly by 0.88% while liabilities inched 0.73% higher to US$219,039k.

PLIN also slumped in 2013 as its revenues fell 18.53%, sending the net profit down by 83.38% to IDR40,547 million.  Assets growth was at 4.47%, outpaced by liabilities which grew by 14.5%.

Technically Speaking...

JCI bounced to return above the 4,600 mark after it got sunk on Monday.

Recent peak-turned-support at 4,477 will be the nearest key support line for JCI, whereas the 200-day EMA at 4,440 will be the subsequent support area. Nearer support will be at 4,510 as this was the prior resistance-turned-support.

Nearest resistance is seen at around 4,665, Friday’s high. Meanwhile, 4,791 will be the next hurdle to crack should 4,650 gives way.

MACD has turned lower now, while RSI has backed away from the overbought area. With global stock indexes bouncing off lows, the JCI is expected to be rebounding as well on Wednesday.

PTPP reached its target price at 1,500, hence the recommendation is now closed with a gains of 29.31% (entry price was at 1,160).

Day Ahead

Putin toned down the Russian stance on Ukraine, giving the global market a big sigh of relief. European and American stock indexes were gaining overnight and this should look good for Asian regionals on Wednesday morning. 

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