Jakarta Daily Tuesday, November 30, 2010

Morning Brief
IDX (11/29/2010) 3,630.64

Change : -11.86 (-0.33%)

Transaction Volume (bn) : 5.47

Transaction Value (Rp tn) : 4.80

Market Cap (Rp tn) : 3,148

Global Indices Chg (%)

Dow Jones (11/29) 11,052.49 -39.51 -0.36%

Nasdaq (11/29) 2,525.22 -9.34 -0.37%
Market Review
S&P 500 (11/29) 1,187.76 -1.64 -0.14%
IDX was closed at negative zone for second straight days as its closing
FTSE 100 (11/29) 5,550.95 -117.75 -2.08% value was getting near our bolinger band bottom level at 3,590 which giving
us signs that IDX currently entering the downtrend period. The fear of
DAX (11/29) 6,697.97 -151.01 -2.20% contagious debt crisis in Euro zone after Ireland received a bailout worth 85
CAC 40 (11/29) 3,636.96 -91.69 -2.46% billion euros still weakened some of the global and regional stocks markets.
Investors all over the world now paying their attention to Portugal and Spain
Nikkei (11/29) 10,125.99 86.43 0.86% as the countries which have potential to follow Ireland and Greece
Hang Seng (11/29) 23,166.22 288.97 1.26% footsteps.
Straits Times (11/29) 3,158.21 0.13 0.00%
Market Outlook
Kospi (11/29) 1,895.54 -6.26 -0.33%
• US stocks markets on last night’s trading session was closed in
Commodity Prices (*) Chg (%) the negative zone as European stocks markets crash yesterday
Crude Oil (US$/Barrels) 85.64 1.87 2.23%
eventually spilled over into US stocks markets overshadowed the
expected positive sentiment from 6.4% rise in retail sales on Black
Gold (US$/Troy Ounce) 1,368.10 12.40 0.91% Friday compared to a year earlier.
Nickel LME (US$/MT) 22,755 245 1.09%
• European stocks markets had a crash on yesterday’s trading
Tin LME (US$/MT) 24,400 340 1.41%
session as FTSE 100, DAX and CAC fell more than 2% as an 85
CPO BMD (MYR/Ton) 3,381 107 3.27% billion euro bailout deal for Ireland wasn’t able to allay concerns
that Euro debt crisis will stop spreading. The next countries that
(*) : - Nickel & Tin Closing Price per Nov 29, 2010
- Crude Oil & Gold Closing Price per 08:30 Local Time will potentially needed bailout like Greece and Ireland according to
many economists in Europe are Portugal and Spain where a
Dual Listing (NYSE) Chg Rp Reuters poll of economists this month showed that 34 of 50
expected Portugal to need a bailout and 4 of 50 expected Spain
TLKM (US$) 36.17 -0.03 8,149
also need a bailout.
ISAT (US$) 30.72 0.32 5,537
• In Asia, stocks markets seen mixed with Nikkei and Straits Times
Key Interest Rates Latest Previous lower by 0.41% and 0.05% while Kospi and Taiwan seen gaining by
1.03% and 0.74% per 09:15 local time.
BI-Rate 6.50% 6.50%
Fed-Rate 0-0.25% 0-0.25% • We expect IDX to move volatile at today’s trading session referring
to the negative trend on global stocks markets while regional
Exchange Rate Rp Chg (%) stocks markets seen mixed on today’s trading movement. We
US$/IDR (08:30 Local Time) 9,012 2.00 0.02%
expect IDX to move between support level 3,548-3,591 and
resistance level 3,636-3,657.
KRW/IDR (08:30 Local Time) 7.75 0.00 0.00%

Research Analyst : Teuku Hendry Andrean

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Jakarta Daily Morning Brief Tuesday, November 30, 2010

News
DEWA’s 3Q2010 Net Earnings Fell by 4.64% yoy
PT Darma Henwa Tbk (DEWA) suffered a net earnings loss in the third quarter of 2010. The
company's earnings fell 4.64% to US$ 13.41 million from US$ 295.51 million in third quarter
of 2009. The hike in the company's operating expenses had contributed to the loss. The
operating expenses widened by 17.84% from US$ 140.8 million last year to US$ 165.94
million. The operating expenses in fact topped the revenue which slightly rose by 0.24% or
US$ 165.94 million from US$ 150.68 million last year. The hike also resulted in a sharp
decline in operating profit by 250.88% to a net loss of US$ 3.71 million from US$ 9.87
million.

INDY Buys 51% Stakes in PT Mitra Bahtera Segara Sejati

PT Indika Energy Tbk (INDY) signed an optional agreement with the shareholders of PT
Mitra Bahtera Segara Sejati on 26 November 2010. Indika signed such optional agreement
with PT Patin Resources as well as Patricia Pratiwi Suwati Prasatya and Inggrid Ade Sundari
Prasatya as the shareholders of Mitra Bahtera. Such option allows Indika to acquire 51%
shares of Mitra Bahtera. Indika had signed an agreement to acquire the majority share of
Mitra Bahtera during the initial public offering. The IPO is scheduled to be held on January-
February next year. By such acquisition opportunities, Indika shall be an affiliated coal
producer as it also becomes the strategic partner of Mitra Bahtera during the IPO. Mitra
Bahtera focused on the coal shipping industry as it began penetrating such industry in 1993
as a family corporation led by Fransesca Hadinata and Bing Prasatya.

Indonesia’s Car Production may Surpasses 700,000 Units This Year

Indonesia’s car production may surpass 700,000 units, the highest level in Indonesia’s
history following the strong demands from its citizens. The growth of automotive sector
significantly rose, shown by the high selling volume of car. Such demand will certainly boost
the car production volume in Indonesia. The positive side, the high production somehow
proofs the strong demands, yet, in the other hand, Jakarta’s traffic jam will be even worse.
This becomes a challenge for government particularly in handling the infrastructure problem.
Adding to that, such market mechanism is somehow unavoidable. Japan, even stated that all
of its automotive companies will make Indonesia as their basis production in ASEAN, moving
from Thailand.

Stock Pick
CODE CLOSE S2 S1 R1 R2 REC

Sell On
PGAS 4525 4175 4350 4625 4725
Strength
Trading
INDY 4000 3750 3875 4075 4150
Buy
Sell On
BBNI 4050 3925 3975 4075 4125
Strength
Disclaimer : This document is for infoma-
tion only and for the use of the recipient. It
is not to be reproduced or copied or made ELTY 163 159 161 166 169 Hold
available to others. Under no circum-
stances is it to be considered as an offer to
sell or solicitation to buy any security, Any
recommendation contained in this report
BBCA 6450 6150 6350 6550 6750 Accumulate
may not to be suitable for all investors.
Moreover, although the information Remarks : S2 = Support 2 REC Definitions : Buy = Enter a long position with full amount
contained herein has been obtained from S1 = Support 1 Accumulate = Enter a long position with portion of the amount
sources believed to be reliable, its accu- R1 = Resistance 1 Hold = Do not cover or sell current position / Do not initiate new position
racy, completeness and reliability cannot R2 = Resistance 2 Reduce = Sell a portion of a position
be guaranteed. All rights reserved by PT REC = Recommendations Sell = Sell the full position
Woori Korindo Securities Indonesia Sell On Strength = Sell the position in R1 or R2 Level
Trading Buy = Speculative Buy and Sell the position at R1 or R2 Level

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