Domestic Stocks are Safe

Jakarta - Jakarta Composite Index closed lower back to a level of 3.774 -24.7 pts (-0.65%), occurred as many foreign net sell Rp1.3 trillion. JCI move anomaly when most regional markets rose, stock index had dropped to its lowest point at 3.710 level before the end of its slightly higher at the closing session. The decline of the rupiah against the U.S. $ became one of the causes of its exit of foreign funds from the Indonesian stock exchange, at the close today rupiah closed Rp8, 788/US $. While the regional exchanges, Hang zinc closed up +0.7%, Nikkei +1.76%, +0.97% and Singapore. Plan of the European Central Bank and central banks to provide ease of other large-dollar loans to banks in Europe and U.S. European markets pulled back stronger. This led to massive withdrawals of dollars from countries in Asia including Indonesia. This causes the dollar strengthening against currencies in Asia. In overnight trading, the Dow rose 1.66%, FTSE +2.11%, +3.15% and the DAX.

Selling pressure on bonds are increasingly making reductions in the rupiah. This affects the decline in some stocks are much affected by the value of foreign currencies especially U.S. dollars. Domestic-based stocks are stocks that is safe for their collection volatiliatas a mid market is high today, while shares of Astra group and Banking in valuation interesting to glance after a considerable decline in prices and their fundamentals still look strong. Technically, today's Jakarta Composite Index is expected tends to rise with an approximate nearest resistance level R1 (3,803.78) and support at the level S2 (3,753.37).

Stock pick for today include:

Bank Central Asia (BBCA), Acc.Buy

Bank Rakyat Indonesia (BBRI), Acc.Buy

United Tractors (UNTR), Acc.Buy