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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).

Selasa, 02 September 2014

Morning Dew - 3 September 2014

Forging Ahead

JCI forged ahead and managed to sneak above the 5,200 mark and settled there on Tuesday, thanks to macro data released on Monday. While the rise still yet to surpass the recent peak at 5,224, increasing volume suggests that more upside is likely in the coming sessions. All but the mining sector ended higher with agriculture being the top sector of the day.

On the corporate front, SRIL reported a drop in net profit to Rp138.67bn for the first half 2014, lower than Rp182.77bn reported last year for the same period. While revenues turned higher to Rp3.26tn from Rp2.09tn, cost of sales jumped from Rp1.66tn to Rp2.67tn. Finance costs almost doubled to Rp171.83bn from Rp92.58bn, hurting the bottom line.

HEXA aims at revenues of Rp4.8tn or US$488.98 million for the FY2014, just 2.22% higher than FY2013 revenues which were at US$478.33 million.  Also, the company’s annual general shareholders’ meeting approved the disbursement of 35% of FY13 net profit worth US$7.64 million as cash dividend (or Rp106.7 per share) .

USDIDR was up at 11,734 on Tuesday compared to Monday’s closing price of 11,710.

Rosy US Data

US manufacturing sector stayed robust in August as shown by the ISM Manufacturing index which ticked up to 59.0 from 57.1. Consensus actually forecast a slight decline to 57.0. The Markit version of manufacturing gauge showed a slight drop to 57.9 instead of staying unchanged as forecast at 58.0.

Construction spending also turned out better than expected in July as the month-on-month data showed a jump by 1.8% after a 0.9% drop in June. Consensus forecast a 1% increase in spending.

Technically Speaking...

JCI started the week (and the month) on a positive tone as the index bounced off low after it came under pressure last Friday. Tuesday saw it settled above the stiff resistance at 5,200 ahead of the all-time high of 5,251. Still, more commitment is needed to secure the upside potential.

As for now, JCI is aiming to secure its ground above 5,200 and subsequently the focus will turn to the next resistance at 5,251, the all-time record high while near-term supports are seen at 5,150-65 (congestion area) and then 5,135, the former lower consolidation band, 5,039 and 5,000, followed by 4,950, the former EMA-50 resistance now turned as support. 

MACD has swung back to negative area but ticked higher on Monday and Tuesday whilst RSI has backed away from above the 70% mark. Volume continued to tick down. 

Day Ahead

After PMI reports came out of the manufacturing sector, it’s going to be the service sector’s turn to show how the service sector performed in August. China, Eurozone, France, Italy, Germany, and England will release their numbers on Wednesday while US will have its turn on Thursday. JCI will find support from recent slate of macro data as well as positive mood on the global side. Geopolitics will remain a potential rally breaker, while the domestic front will continue to see issues surrounding the fuel subsidy as well as the forming of the new cabinet.

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