JKSE Weekly Oct 7, 2013

Today I'd like to talk a bit about the JKSE which is being consolidated for a while, but we still see a positive outlook in the medium-term run. We see that the consolidation at the 38.2-61.8% Fibonacci retracement is quite confusing, but since the MACD still in positive area and seems to be golden crossing very soon, then we see a positive outlook for JKSE.

With the latest news that there might be a downsizing for the "lot size", from 500 to 100, then it's very possible that it will attract not only smaller local retail investor but also attract foreigners too. But one news that halt it's euphoria is the change to the ticksize and the limitation of the auto reject to only 20 ticksize, which is not so good.

Somehow, people doubt that JKSE is still fundamentally strong, but let me tell you what makes JKSE is still strong. Indonesia is filled with mostly young-aged people, who are around 25-35 years old and the number is growing each year. Beside that the growth of rich people in Indonesia and the growing of middle class is a good news to the industries out there, which means it increases the consumption of the country and Indonesia rely less on the export which is good.

Let's see the chart in order to re-affirm it.

I still maintain a Buy action on JKSE and also with the same target 5300-5350.

Happy Investing^^
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