Monday, November 7, 2016

The Insider Stories Morning Notes - JCI seen flat to higher on absence of fresh leads, tax amnesty

JAKARTA (TheInsiderStories) - Indonesian shares are expected to move flat in the morning session, with potentiality to go up later in the day, due to lack of strong fresh leads. However, the relatively positive progress of the government’s tax amnesty program and the Fed’s decision last week to hold its Fed rate, may prompt some market players to make selective buying.

As of end of the week, the amount of redemption funds under the tax amnesty program has reached Rp42.2 trillion, or 25.2 percent of the government’s target of Rp165 trillion.

Last Friday, the Jakarta Composite Index (JCI) closed up 8.64 points or up 0.16 percent to 5,388.90.

Reza Priyambada, Head of Research of NH Korindo Securities Indonesia, said technically the JCI is expected to move within support level of 5,125-5,200 points and resistance level of 5,278-5,289 points.

“Technically, the JCI is reversing towards uptrend and is expected to move positively, continuing previous day’s trading,” he said. “The JCI is now likely to stay in the positive zone, however, market players need to be vigilant on market sentiment,” he said.

Stocks to watch (according to NH Korindo):

KAEF 2500-3100

SMBR 1570-1740

BBTN 1890-2060

KLBF 1690-1820

UNVR 44000-45760

ISSP 226-256

DPUM 1080-1155

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