This is what we just told to our clients this morning for Indonesia market:
1. S&P downgraded outlook of US long term bond to "negative" while Indonesia was raised to higher notch of rating approaching the investment grade on April 8. We are on the center spot of global market are side talking and projecting the grade will be adjusted within months. Majority of concerned analysts in the Street are strongly hoping Indonesia to follow suit South Korea, which spent a mere 21 days to get to the investment grade in the wings in 1999 from latest Indonesia position . A promotion would sharply widen its range of potential investors, and the latest development in developed market bond ratings justify and rationalize the basis for sophisticated investors/traders to return to selective and prospective emerging markets. 2. Pressure in the US market will expand externally a bit temporarily. These circumstances will provide buying leverage for a few emerging markets, specifically Indonesia, and will be noted as a few "recent fair price" hunting of quality stocks. We advise to focus for short-term investing/trading in stocks which provide cushion from export reliance volatilities. Some domestic driven revenues stocks such as retail will still gain some powerful strength in the pressuring market. 3. Give more emphasis on stocks supported by recent foreign accumulation and/or prioritized sector corresponding to the overall global and regional economic cycle. 4. Use your time and leverage to maximize accumulation during the pressure. '+'
