Morning Dew - 15 April 2014

Solid Footing

JCI started the week with a solid footing as it gained 1% on Monday’s session. The index has continued to gradually recapture its lost ground after an indecisive legislative election result last week. 

US retail sales were buoyant in March as the monthly figure showed a 1.1% jump, following a 0.7% gains in February. It was the biggest increase since September 2012 with ten of 13 categories advanced.

In corporate level, Benakat Integra Tbk. (BIPI) released its 2013 financial figures which showed the impact of the acquisition of new mining infrastructure company. Assets jumped from US$479,299k to US$1,339,688k while revenues went up from US$38,059k to US$190,595k and net profit soared from US$929k to US$55,317k. Liabilities however, increased from US$78,122k to US$864,147k.

Second Attempt

Dwi Aneka Jaya Kemasindo will sell 1 billion of new shares or 40% of its stake. The shares will be offered at the range of IDR425-475 per share. This will be its second time the company do the offering after last November when it offered the shares at IDR425-550 per share. The proceeds will be used to purchase machineries (40%) and the rest for working capital. This will raise the production capacity from 36k tons to 76k tons. DAJK is a printing and packaging company.

Technically Speaking...

JCI continued to regain its lost ground and managed to end up by 1% above 4,860.

The nearest resistance is seen at 4,930, the recent intraday high ahead of 5,000 which is the psychological resistance and subsequently the projection target at 5,063.

Key support lies at 4,661 which corresponds to the 50-day EMA curve.

Volume went up on Monday, as the MACD attempted to return to above the zero line and the RSI curve curled back up.

WIKA has met its suggested entry price at 2,140. The reco is now open with stop set below 1,900 and the target price is set at 2,500.

Day Ahead

Upside potentials are maintained based on continuation of Friday’s bounce on Monday. The positive performance from the Dow may also lend support to JCI on Tuesday. Still, with political uncertainties abound, corrective setback remains a threat, especially if the index rises too much and too soon.

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