Kim Eng Indonesia Equity Daily, 30 Jul 09

Our Comment

Results are streaming in this morning.

A number of counter posted above-expected results:
Bank Mandiri (BUY), Gudang Garam (BUY), Indocement (BUY),and Unilever, (Under Review).

Other companies´ results are in line with expectations: Bank Central Asia (Under Review), Budi Acid(HOLD), Total (BUY) and Wijaya Karya (BUY).

China market was down 5% yesterday due to concerns over weakening loan growth, which will hurt the economy.

The selloff sent negative impacts to other markets in the region. This morning, regional stocks are still slightly down. Prices of most commodities tumbled this morning as oil price was down almost 4%as US oil stock rose.

We see the Indonesia market to continue its correction today.

Katarina Setiawan

Highlights

o Bank Mandiri (BUY): Offsetting effect of provision and tax movement
o Gudang Garam (BUY): Result beats expectation
o Wijaya Karya (BUY): Strong 2Q09 net profit
o Wijaya Karya (BUY): Awarded US$103m contract from Pertamina
o Indocement(BUY): Above expectation 1H09 net profit
o Total Bangun Persada (BUY): 1H09 net profit in line
o Budi Acid (HOLD): 1H09 net profit above expectation
o Unilever(UND. REVIEW): Result beats expectation
o BankBCA: Flat QoQ performance
o HMSampoerna: 1H09 results
o Elnusa:1H09 results
o MustikaRatu: 1H09 results
o JasaMarga: 1H09 results
o UtrajayaMilk Industry: 1H09 results
o Indomobil Sukses Makmur: 1H09 results

From our chartist desk

o IDX : We upgrade the lower target for the index from 2145 to 2180. Many stocks are overbought on stochastic signals. We prefer small caps with strong signal fromTD sequential buy. Today´s trading range is between 2116-2168-2196 (support)and 2248-2270-2321 (resistance) .

o TURI : Daily TD sequential indicated buy countdown 4th day, and we upgrade target price from Rp1700 of Rp2050. TRADING BUY

o SMRA: This stock included bullish cycle on property. We set our target of Rp600, referring to trend line. TRADING BUY