Market Flash: iSHARES MSCI Indonesia Investable Market Index Fund (EIDO:US) PRICE: 28.530 USD Down -0.360 (-1.246%) >>> BI: Rupiah Melemah Akibat Kondisi Eropa >>> Pertemuan FED pertimbangkan langkah baru dorong ekonomi >>> KIJA akan Terbitkan MEN Valas USD150 Juta >>> PT Indika Energy Perusahaan Teladan Dunia 2011 >>> Govt Promises Revision of Cost Recovery Regulation >>> BPMigas Demands PGN to Pay US$6 per MMBTU >>> Jababeka to Raise US$150 Million from Debt Markets >>> SCG Chemicals buys Chandra Asri >>> Solusi Tunas eyes Rp380 bio IPO >>> SMR Utama scouts Rp300 bio IPO >>> Alam Sutera picks two bond arrangers >>> ASII Tetap Rajai Penjualan Mobil Agustus 2011 >>> Perusahaan Thailand kuasai Saham TPIA senilai Rp 3,76 Triliun >>> Agis Main ke Tambang, Sahamnya Masuk Dalam Pengawasan >>> ACES Mendekati The Northern Agar Mau Kurangi Kepemilikan >>> IHSG masih harus berjuang terus bertahan diatas MA200 >>> Melirik Peluang Akumulasi di Saham Perbankan >>> Analisa Saham BUMI: Kuat Bertahan & Berpeluang Kembali Uptrend >>> Analisa Saham JSMR: Bertahan Di Support, What Next? >>> INDF Tertahan Di Area Support Kuat, Berpeluang Rebound >>> ASII Break Minor Support, Sell on Strength >>> ADRO Membentuk Descending Wedges, Berpeluang Rebound Terbatas >>> Wall Street ends flat as early gains evaporate >>> Fed begins policy meeting, tiptoes toward easing >>> Fed meeting to help decide on long-term Treasuries >>> Greece Makes 'Good Progress' in Reform Talks: EC >>> China worried Europe debt crisis will hit trade >>> China could roll out 4.65tr yuan stimulus package >>> IMF sees Mideast stagnation >>> NYMEX-Crude ends higher at Oct contract expiry >>> Asian Crude Palm Oil Up On Technical Buying, Soyoil >>> Foreign net Sell - 61.785.746

Selasa, 09 Agustus 2011

Stocks Could Rebound From Downgrade Plunge, U.S. Equity Strategists Say - Bloomberg

America’s debt downgrade won’t keep the nation’s stocks down in the long term, and investors should consider buying large companies and dividend-paying stocks, according to U.S. equity strategists.

Bigger companies will do better than smaller ones because they hold so much cash and will be viewed as safer, according to an Aug. 7 Citigroup Inc. (C) note. Investors should also look for stocks that pay dividends as the world’s largest economy slow, Oppenheimer & Co. wrote in a note today. JPMorgan Chase & Co. (JPM) said that while the next two weeks may be “turbulent” for equities, the overall impact will be minimal.

Standard & Poor’s lowered the U.S. long-term rating one level to AA+, from AAA, after markets closed on Aug. 5 while keeping the outlook “negative,” citing less confidence that Congress will end Bush-era tax cuts or tackle entitlements. Fitch Ratings and Moody’s Investors Service still hold a AAA rating. Some strategists say that while the downgrade may hurt the economy, last week’s 7.2 percent drop in the Standard & Poor’s 500 Index shows equity investors were anticipating it.

“The medium- to long-term effects of the U.S. sovereign downgrade are minimal, even as the short impact could be turbulent,” Thomas Lee, JPMorgan’s equity strategist in New York, wrote in an e-mailed note.

S&P 500 Performance

The S&P 500 fell 3.7 percent to 1,155.64 at 10:35 a.m. in New York today, extending its decline since July 22 to 14 percent. The index’s 4.8 percent tumble on Aug. 4 marked its biggest daily drop since February 2009.

The downgrade may spook investors, causing sentiment to grow more bearish in the short term, strategists at Barclays Plc, Citigroup and JPMorgan said. Rising cash levels relative to debt and earnings growth should push the S&P 500 higher by the end of the year, they said.

Barry Knapp, the New York-based head of U.S. equity strategy at Barclays Plc (BARC), said he may lower his 1,450 year-end target if sales in the back-to-school season are disappointing, signaling a hit to confidence that may impair consumer spending. Investors should buy companies most-tied to the economy, since they will benefit first when stocks rebound, he said.
‘Overblown’ Recession Fears

“The fears of a global recession are way overblown and that the actual effect of a downgrade is very little in the short run,” Knapp said in an interview on Bloomberg Television’s “In the Loop” with Betty Liu. “When clients have asked me, ‘Should I be moving into defensive high-yielders?’ my answer is no.” He said, “Cyclicals will lead the rebound so you run the risk of whipsawing yourself if you go to defensives here.”

While Goldman Sachs Group Inc. (GS) lowered its year-end target for the S&P 500 to 1,400 from 1,450, Oppenheimer’s New York- based chief investment strategist, Brian Belski, held his 1,325 estimate, saying dividend-paying stocks are an “excellent strategy for the current market environment.”

Companies in the index have put money aside and paid down debt after the worst financial crisis since the Great Depression. Cash on corporate balance sheets excluding financial, utility and transportation stocks represented about 9.7 percent of market value as of March 31, up from the 20-year average of 6.7 percent, S&P data show. Those large companies with strong balance sheets may benefit in a risk-averse environment, according to Citigroup and Morgan Stanley.
‘Attractive’ Cash Levels

“Given attractive corporate cash levels, one could see large well capitalized companies benefit from money flows seeking respectable returns with relative safety,” wrote Tobias Levkovich, Citigroup’s chief U.S. equity strategist in New York. “From an equity market perspective, this could augur well for larger market cap entities.” Read More

Tidak ada komentar:

Posting Komentar