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Indosurya Morning Breakfast
Weekly Report| Fourth Week, May 2010
Your Investment Partner
Economy Indicator
Investor are still worried about a global economic recovery
Global economic conditions have not yet shown any sign of recovery from the crisis. Investors
are still worried about the prospects for the European economy is slowing its growth. Some
negative sentiment that colored trading week yesterday, such as, again the problem of
overheating in the U.S. new banking rules which are feared could erode profits from financial
institutions and Germany's decision to restrict naked short selling for 10 shares of important
financial institutions. Investors also disappointed in the meeting of EU finance ministers and
governors of ECB in Brussels that the meeting did not produce detailed solution for the Greek
form of relief. Investors worried that the debt crisis of Europe will spread across the world
including the U.S. Interest rates on the bond market fell sharply as investors switched to
minimal investment risk. U.S. jobless claims data incentives rose significantly last week and
the Greek government's response to the crisis sparked new protests in Athens. Investors also
are worried that China will tighten the rules for holding back economic rate.
While waiting good news, Investor take wait & see position
Foreign investors on regional exchanges were taking advantage of Greek Crisis momentum
with profit-taking action and applying the hit and run trading in an attempt to secure liquidity
and diversify portfolio risk. The announcement of a new finance minister can not give a
positive sentiment on the stock market. Altough, Agus Martowardojo figure are quite
acceptable to the market. But some people still doubt his ability in managing the macro
economy and fiscal m