KC <[EMAIL PROTECTED]> wrote:
Our Comment
The government is offering 13 ready-for-tender-projects with total value
Rp46t (US$4.93b). Feasibility studies on the projects have been completed and
the government expects to launch a prequalification tender by November 08. The
projects include toll roads, coal-fired power plant, as well as drinking water
in area of Sumatra, Java, Bali and Sulawesi . We see that two state-owned
construction companies: Adhi Karya and Wijaya Karya will be the major
beneficiaries for the infrastructure projects.
Indosat launched cheap tariff of Rp40 per call for on-net calls on a certain
period (i.e., 01.00-06.00 for Greater Jakarta and Banten customers) and a
cheap tariff of Rp40/SMS to all operators by using Super Voucher 200 SMS. This
will likely to boost number of subscribers. However, ARPU will decline.
While impact on voice calls will be slightly limited (given the odd hours for
the cheap tariff), we expect the program to increase SMS usage significantly.
The above even further shows that the telecommunication sector is experiencing
tight competition. We see that Indosat share price will remain strong in the
near future, triggered by valuation used by Qatar Telecom. There are still
uncertainties pertaining tender offer. Maintain TRADING BUY.
The US markets dropped this morning, triggered by financial sector and
sharp increase in producer prices. The Fed is expected to maintain its
interest rates at current level in the next meeting. But pressure on rate rise
is mounting, driven by inflationary concern.
Katarina Setiawan
Highlights
Astra Agro Lestari (BUY): To build 2 new mills
Indofood (BUY): Plans a private placement
Charoen Pokphand (BUY): Obtained loan for Capex
Indosat (TRADING BUY): Launched new cheap tariff for IM3
Aneka Tambang: Project cost in Buli may increase to US$4.5b
Budi Acid: Share buyback plan update
IPO: Bayan Resources ( a coal mine company)
Bank Buana: UOB to do a tender offer
Construction sector: Govt to call tender for 13 infrastructure
projects
From our chartist desk
JCI: Next support for JCI is 2350, as the low test level. Moving
average/MACD 100-200 days has not shown a reversal. CPO, plywood, property,
and infrastructure sectors are potentially good for entry. Todays trading
range is between 2315-2348-2363 (supports) and 2396-2414-2447 (resistances)
ISAT: Share price is in corrective wave 2 right now, but near
technical rebound from moving average-14 days side. BUY ON WEAKNESS
UNTR: Strong impulse wave 3rd with up trend line. Our target price
is Rp13450. TRADING BUY.
