JCI Prone Profit Taking By Domestic Investors

JCI's performance is still pretty solid with the potential to approach the 5.300 level, on previous reviews I commented that JCI could reach the level of 5.335. The volume of foreign investors buying is still strong enough where the net buy year-to-date reached Rp 23 trillion. the entire sector is experiencing a rise in current sector where property, consumer goods and light industry became a very sector underpinned the rise in JCI in addition to the banking sector. But are wary because of the patur technical RSI already saturated buy above 78% there will be profit taking pressure at any time. If JCI had a weakened to as low as 5.150 and then persist around the 5.085. Currently support the JCI was around the level of 5.150-JCI ever rally from the lowest level beginning in 2014 when it is around 4.175 and strengthened to reach an all time high level of 5.500 in the year 2015 in April.

Economy Update
The Bank of England on Wednesday said that the central bank does not see any clear evidence of a sharp slowdown will occur in the economy of post-war United Kingdom decision Brexit, although about a third of the company's discussions with the central bank is planning to reduce recruitment and investment level.

The International Monetary Fund (IMF) in its World Economic Outlook released today again lowered the projected global economic growth be 3.1% this year, from an earlier projection in April amounted to 3.2%. The IMF also lowered growth projections in 2017 became 3.4% over the previous 3.5%.

Equity Comment
There is positive news that would menyasar the result of absorption of tax amnesty i.e. where the Government entering a real estate investment Fund (DIRE) as one of the instruments of absorbing funds repatriation tax forgiveness. In order for an instrument that is able to attract investors, the Government initiative of lowering the taxes related to the DIRE that assessed less competitive than other countries. In the direction concerning the facilities and land rights acquisition cost of the building (BPHTB) for issuing DIRE to a number of districts, it is our view will be fairly influential in the expansion of the property sector's performance in the stock market, deepening likuditas as well as the business plan that increases votes will benefit the property sector stocks.

issuers with the current price is above the highest price during the last one year, GGRM, MYOR, BBCA, JPFA, GJTL, KKGI, PPRO, BSIM, FASW.

Issuers with share prices managed to cut off the MA10; BSDE, TARA, DILD, ELSA, SIDO, BEKS, WINS.

Issuers that have growth in EPS (earning per share) best, GWSA, JPFA, KIJA, CPIN, FASW, WSKT, a BNGA, TCID.