Jakarta Daily Thursday, December 9, 2010

Morning Brief
IDX (12/08/2010) 3,769.99

Change : 47.65 (1.28%)

Transaction Volume (bn) : 5.53

Transaction Value (Rp tn) : 7.86

Market Cap (Rp tn) : 3,264

Global Indices Chg (%)

Dow Jones (12/08) 11,372.48 13.32 0.12%

Nasdaq (12/08) 2,609.16 10.67 0.41%
Market Review
S&P 500 (12/08) 1,228.28 4.53 0.37%
IDX remains in the positive zone after Muharram holiday at yesterday’s
FTSE 100 (12/08) 5,794.53 -13.97 -0.24% trading session as this uptrend period has happened for five straight trading
days. IDX even managed to record a new high closing driven by the gain of
DAX (12/08) 6,975.87 -26.04 -0.37% BUMI, ADRO, ASII, ITMG and HRUM. This condition give the opportunity
CAC 40 (12/08) 3,831.98 21.48 0.56% for IDX to experience antoher window dressing period ahead of the closing
year of 2010. In Asia the gain of IDX was followed by Nikkei and Straits
Nikkei (12/08) 10,232.33 91.23 0.90% Times while Hang Seng, Kospi, Taiwan and Shanghai have experienced a
Hang Seng (12/08) 23,092.52 -335.63 -1.43% loss in yesterday’s trading session.
Straits Times (12/08) 3,202.80 10.92 0.34%
Market Outlook
Kospi (12/08) 1,955.72 -6.80 -0.35%
• US stocks markets ended up slightly on yesterday’s trading
Commodity Prices (*) Chg (%) session boosted by the soaring two chinese companies namely
Crude Oil (US$/Barrels) 89.09 0.81 0.92% Youku.com and E-Commerce China Dangdang in their US stock
market debuts. Along the way, US stocks markets had experienced
Gold (US$/Troy Ounce) 1,387.00 -14.90 -1.06% negative movement affected by bond yields rise on fears that the
Nickel LME (US$/MT) 23,750 -300 -1.25% economy would heat up under the extending Bush-era tax cuts
plan.
Tin LME (US$/MT) 25,580 -600 -2.29%
CPO BMD (MYR/Ton) 3,594 -16 -0.44% • European stocks markets at yesterday’s trading session ended
(*) : - Nickel & Tin Closing Price per Dec 8, 2010
mixed as concerns about Euro Zone still remain in investors’ mind
- Crude Oil & Gold Closing Price per 08:30 Local Time affected by deepening uncertainty over how to stem the Euro
Zone’s debt crisis marked by German bonds sell off. Yields on
Dual Listing (NYSE) Chg Rp German Government bonds rose yesterday as the yield on the 10-
year German Bund, the benchmark of all Euro Zone debt topped
TLKM (US$) 35.65 -0.76 8,033
3% for the first time in seven months.
ISAT (US$) 32.12 0.13 5,790
• Asian stocks markets in today’s trading session seen mostly
Key Interest Rates Latest Previous slightly higher with Nikkei, Straits Times, Hang Seng and Kospi
BI-Rate 6.50% 6.50%
gaining by 0.26%, 0.47%, 0.33% and 0.65% per 09:05 local time. The
positive movement made by Asian stocks markets was affected by
Fed-Rate 0-0.25% 0-0.25% the positive economic reports from Australia and Japan marked by
the Australian Jobless rate data per November which fell to 5.2%
Exchange Rate Rp Chg (%) from 5.4% a month earlier and Japan’s GDP which grew at an
annualized 4.5% in three months ended Sept. 30, faster than 3.9%
US$/IDR (08:30 Local Time) 9,013 3.00 0.03% reported last month.
KRW/IDR (08:30 Local Time) 7.96 0.00 0.06%
• We expect IDX to remain in the positive zone in today’s trading
session spurred by the positive trend from US and Asian stocks
markets and the potential positive movement from newly listed
stock, Bumi Resources Mineral (BRMS). We expect IDX to move
between support level 3,738-3,746 and resistance level 3,782-3,795.

Research Analyst : Teuku Hendry Andrean

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Jakarta Daily Morning Brief Thursday, December 9, 2010

News
BMRI will Acquire a General Insurance Company Next Year
PT Bank Mandiri Tbk (BMRI) will conduct a general insurance acquisitions in the middle of
next year. To perform this corporate action, Bank Mandiri will use some proceeds from
the rights issue which will be published in the first quarter of 2011. This acquisition is to
complement the insurance business which has been owned today. Bank Mandiri only have
one life insurance that is PT Axa Mandiri Financial Services (AMFS). So insurance company
that will be acquired later is a damage insurance.

BI Predicted Capital Inflow in Portfolio will Reach US$ 19 Billion

Bank Indonesia (BI) predicted that capital inflow in portfolio until the end of this year will
reach U.S. $ 19 billion. Portfolio is in the form of SBI (Bank Indonesia Certificate), GS
(Government Securities) and share for 2010. BI predicted that capital inflow will continue
flowing into emerging markets because developed countries’ economy has not recovered
and the condition of crisis in Europe has not been completed. BI is currently brewing some
policies to anticipate the impact of rapid capital inflow, especially against a very strong
appreciation of the rupiah. One of the policy is re-enact the restrictions of short-term foreign
loans banks (Vostro accounts) and raise the Statutory obligations (GWM) for foreign
exchange. While from the management of capital flows, the policy being deliberated is a 3
month holding period (MHP), which aims to further reduce the flexibility of foreign ownership
of SBI by MHP a plus-one policy and foreign exchange hedging obligations which gives the
barrier to entry into the larger SBI (zero return for foreign investors).

AALI’s CPO Production in Jan-Nov 2010 Reach 1 Million Tons

CPO production of PT Astra Agro Lestari Tbk (AALI) for the period of January-November
reach 1 million tons or grew by 1.6% from 994,024 tons at the same period in 2009. This
production was contributed by Astra Agro's fresh fruit bunch (FFB) harvested production of
3.87 million tons, which were still lower by 2.1% compared the same period in 2009. Astra
Agro’s FFB which were produced by Sumatra and Sulawesi areas fell by 7.2% and 3.7%
respectively, while Kalimantan area rose by 5.3%. It was found that third parties FFB’s
processed for this period increased by 50.4% compared to the same period in 2009, this was
in line with the increasing of the company's FFB processed by 2.3%. Astra Agro's FFB yield
for the 11 months period in 2010 reached 18.48 tons/ha, retreated by 7.8% compared to the
same period in 2009, while the company's kernel production reached 217,866 tons,
increased by 1.9% compared to the same period in 2009 which were 213,703 tons.

Stock Pick
CODE CLOSE S2 S1 R1 R2 REC

Sell On
BUMI 3125 3050 3075 3150 3175
Strength

SMGR 9700 9450 9550 9850 10050 Hold

Trading
ADRO 2625 2425 2525 2675 2725
Buy
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 INDF 4725 4550 4650 4850 4950 Sell
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
INTP 17000 16550 16750 17150 17350 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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