Wednesday, April 30, 2008

Indonesia shares may be consolidating but the main index would remain in a short term bullish trend. Overall, caution remains and the game is still on how to maintain a healthy liquidity... On month inflation in April may be better than in February. On-month inflation could be at between 0.4%-0.6%, easing from a 0.95% in March due to less volatile prices in the month. Inflation data will be announce at 1330 local time on FRIDAY. The main index may go up and down by between 16 and 36 points. Main index: 2272-2323 S2: 2256 R2: 2356

TLKM: 8,800-9,100 Its ADRs in NY rose 0.5% to $38.78, or equal with IDR8,933 based on USD/IDR of IDR9,215. On chart reading, Telkom has an opportunity to return to a short term bullish trend given an increase in volume and a shifting of support from IDR8,650 to IDR8,700. BUY on weakness

ISAT: 5,900-6,400. It is now trading at a pbv of 1.99 times and a p/e of 14 times 2008 prospective earnings, compared with the average industry of 3.6 times PBV and p/e of 16 times. Indosat looks more attractive on PBV valuation. BUY at any level below IDR6,000.

ANTM: 3,450-3,700. LME nickel has so far shown flat movement despite a slight decrease in inventory. On chart reading, share prices may remain within this range for building volume until everything is clear
with Herald's hunt.

INCO: 6,350-7,100. It is still trading at a discount.... Long term lovers should accumulate these shares. BUY on weakness

BUMI: 6,400-7,200. Volatility remains high, with uptrend Chanel likely limited by swift correction. We
are now awaiting how generous Bumi would be in distributing the dividend payment. I still go with a
buy on weakness

TINS: 31,800-32,900. Bending chart... It may suffer from correction if it fails to break above IDR32,800
immediate resistance. While tals on stock split heighten, TINS is still trading below its fair value of IDR40k based on GGM, so...any correction would be good for long term investors for accumulation.

SMRA: 550-650. It is now trading at 8.7 times 2008 prospective earnings and 1.22 times of PBV, which could provide a wider room for a further rebound and long term investment. BUY at any level.

UNTR: 11,400-12,200
ELTY: 390-420
PWON: 480-600
BBRI: 5,900-6,700
CTRS: 540-700
MIRA: 1,320-1,500
TBLA: 370-430