Jakarta Daily Monday, December 13, 2010

Morning Brief
IDX (12/10/2010) 3,747.71

Change : -38.38 (-1.01%)

Transaction Volume (bn) : 8.59

Transaction Value (Rp tn) : 14.46

Market Cap (Rp tn) : 3,262

Global Indices Chg (%)

Dow Jones (12/10) 11,410.32 40.26 0.35%

Nasdaq (12/10) 2,637.54 20.87 0.80%
Market Review
S&P 500 (12/10) 1,240.40 7.4 0.60%
IDX eventually suffered a correction at last Friday’s trading session after
FTSE 100 (12/10) 5,812.95 4.99 0.09% having experienced a strong rally for 6 days in a row previously. The
negative trend on other Asian stocks markets eventually dragged IDX also
DAX (12/10) 7,006.17 42.01 0.60% as there’s no catalyst from global and regional zone to make IDX to
CAC 40 (12/10) 3,857.35 -0.7 -0.02% continue its uptrend movement. The lowering IDX was driven by the
lowering price of stocks such as BBNI, INTP, BUMI, TLKM, ASII and BBRI.
Nikkei (12/10) 10,211.95 -73.93 -0.72%
Hang Seng (12/10) 23,162.91 -8.89 -0.04% Market Outlook
Straits Times (12/10) 3,185.42 -24.78 -0.77%
• US stocks markets ended its last week’s trading session positively
Kospi (12/10) 1,986.14 -2.82 -0.14% as investors looks on positive economic data and corporate news
despite tax cut package compromise that may take longer time
Commodity Prices (*) Chg (%) than first thought. US stocks markets was able to end positively
Crude Oil (US$/Barrels) 87.73 -0.72 -0.81% driven by the latest Preliminary December Consumer Sentiment
Index which rose to 74.2 from 71.6 in the last period. This number
Gold (US$/Troy Ounce) 1,385.00 -4.40 -0.32% also exceed more from consensus numbers at 72.5. The strong
Nickel LME (US$/MT) 23,685 -70 -0.29% number from Consumer Sentiment Index was spurred by the
continued improvement in the employment situation via lower
Tin LME (US$/MT) 26,275 500 1.94% claims level and strong equity gains over the past month.
CPO BMD (MYR/Ton) 3,633 35 0.97%
(*) : - Nickel & Tin Closing Price per Dec 10, 2010
• Meanwhile European stocks markets ended mixed at last Friday’s
- Crude Oil & Gold Closing Price per 08:30 Local Time trading session with FTSE 100 and DAX experienced a 0.09% and
0.60% gain respectively while CAC 40 experienced 0.02% loss after
Dual Listing (NYSE) Chg Rp China’s efforts to tighten monetary policy with its decision to raise
Central Bank required reserves by 50 basis points overshadowed
TLKM (US$) 35.59 -0.24 8,023
the upbeat US consumer sentiment data.
ISAT (US$) 32.14 -0.11 5,796
• Asian stocks markets at this morning’s opening trading session
Key Interest Rates Latest Previous seen in the positive mood as Nikkei, Hang Seng, Straits Times and
Kospi seen advancing by 0.14%, 1.04%, 0.08% and 0.05% per 9:05
BI-Rate 6.50% 6.50%
local time.
Fed-Rate 0-0.25% 0-0.25%
• We expect IDX to move mixed at today’s trading session with
Exchange Rate Rp Chg (%) possibility to move between positive and negative zone affected by
US$/IDR (08:30 Local Time) 9,017 -2.50 -0.03% positive trend on US and other Asian stocks markets while profit
taking situation will potentially still continue on IDX since its
KRW/IDR (08:30 Local Time) 7.90 -0.02 -0.21% technical indicators begun to give an overbought signal in the
short-term period. We expect IDX to move between support level
3,710-3,722 and resistance level 3,766-3,778.

Research Analyst : Teuku Hendry Andrean

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Jakarta Daily Morning Brief Monday, December 13, 2010

News
RODA Cooperates with Wika Realty in a Project Worth IDR 150 Billion
PT Royal Oak Development Tbk (RODA) is cooperating with PT Wika Realty in developing
assets in Menteng, building residential and office area that values IDR 150 billion. The
project will be developed through its subsidiary, PT Cosmo Menteng. A memorandum of
understanding (MoU) has been signed on November 15, 2010. Wika Realty will be a co-
developer that will assist in constructing and marketing. The assets still belong to RODA.
The negotiation is expected to finish within one or two months, so by the end of January or
the start of February the portion of earnings can be shared between two parties. At the same
time, the company is seeking for new investors to cooperate in developing a resort area in
Bali. The company also owns strategic properties in Canggu, Pecatu, Jimbaran, and Pejeng
Ubud.

S&P Downgrade APOL’s Corporate Credit Rating to D

Standard & Poor's Ratings Services (S&P) Stated last Friday that it had lowered its long-term
corporate credit rating on Indonesia-based company, PT Arpeni Pratama Ocean Line Tbk
(APOL) to D from SD. At the same time, S&P lowered the issue rating on the outstanding
US$ 140.85 million senior secured notes due May 3, 2010, issued by Arpeni Pratama Ocean
Line Investment B.V. and guaranteed by APOL, to D from C. S&P downgraded APOL
because the company has not paid the coupon that was due on Nov. 3, 2010, even though
the 30-day grace period has passed. APOL's liquidity has been increasingly stressed since
2009. The company funded its growing working capital requirements using short-term loans,
despite its already high indebtedness. The situation was compounded by a decline in
operating margin.

IMAS Targets IDR 12 to 14 Trillion in Sales Next Year

Automotive distributor and assembler PT Indomobil Sukses International Tbk (IMAS) targets
to generate sales as much as IDR 12 trillion to IDR 14 trillion in 2011, as boosted by
predicted growth of automotive industry and government’s commitment to ameliorate
infrastructure problems. During the last three years, automotive sales grew by 10% at
average. The Company predict that at the end of the year sales will reach IDR 10 trillion. The
company is optimistic that sales next year will increase, after the company has settled its
debt this year. In the general meeting, shareholders of the IMAS agreed to convert its debt
into equities (debt to equity swap) as much as IDR360 billion, which must be paid to PT
Tritunggal Intipermata. It will surely reduce the pressure in the company’s capital.

Stock Pick
CODE CLOSE S2 S1 R1 R2 REC

ICBP 4750 4575 4650 4775 4850 Accumulate

Sell On
BHIT 177 148 162 188 200
Strength
Sell On
MNCN 880 710 790 930 980
Strength
Disclaimer : This document is for infoma-
tion only and for the use of the recipient. It Sell On
is not to be reproduced or copied or made MPPA 1830 1670 1750 1890 1950
available to others. Under no circum-
Strength
stances is it to be considered as an offer to
sell or solicitation to buy any security, Any Trading
AKRA 1790 1640 1710 1820 1860
recommendation contained in this report Buy
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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