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Tuesday, October 18, 2011

PROPERTY's STOCKs

by Smart Technical Analyses

Property Sector: Djan Faridz succeeds Suharso Manoarfa as Public Housing minister (Overweight)

Cabinet reshuffle by the President resulted to replacement of Public Housing minister, from earlier Mr Suharso Manoarfa to Djan Faridz, representing the same party, Partai Persatuan Pembangunan.

However, what makes the replacement interesting is the background of the new minister, which also a property business player. This may suggest to positive implication to property sector in general, especially on any future public policy made that may skew towards business players.

One crucial matter in the sector is in regards to law implementation concerning Residential and Estates which recently passed the DPR approval in Des10. In the new law, developers are required to build at least 20% of the project before it can be offered it to customers. However, the Government Regulation as the implementation of the law is currently still pending in the ministry.

Supported with continued mild mortgage environment, we maintain our Overweight view on the sector. Our top pick is BSDE, SMRA and BKSL.

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