India's post-election bull may continue its run but more likely will retrace its steps, giving investors a chance to get in at lower valuations. Look for companies that offer the best relative valuations.
One good move is to take most of your gains from India's election fever and look to a country in an election cycle--Indonesia. Recently completed parliamentary elections indicate that the strong showing by President Susilo Bambang Yudhoyono's Democratic Party will make it tough to beat in the upcoming July presidential election. Susilo's reelection will give a boost of confidence in a country that, like India, has a youthful population and a growing middle class. Significantly, India, the U.S. and Indonesia represent the three largest democracies in the world. Indonesia's growth rate has held up well during the global meltdown, and it has reduced its government debt. Consumer spending and private investment are on the upswing. While the Jakarta Stock Exchange has had a good run this year, valuations are reasonable relative to India, and its market will get a boost from any uptick in commodities such as palm oil, gold, silver, copper and nickel. Telekomunikasi Indonesia, which I recommended in a previous column, is an excellent proxy for the Jakarta market. Another stock I like with natural gas prices coming off a 7-year low is Perusahaan Gas Negara($0.3, 6719764). A broader play would be the Market Vectors Indonesian Index ETF (IDX), which has a sector breakdown of 29% for financials, 20% energy, 17% materials and 19% for consumer staples and discretionary. http://www.forbes.com/global/2009/0608/india-elections-manmohan-singh-global-gambits.html --- In obrolan-bandar@yahoogroups.com, "jsx_consultant" <jsx-consult...@...> wrote: > > Trade PGAS > > > http://www.obrolanbandar.com/piwpgas.htm >
