Chemical tanker sector a relative safe haven in shipping world. Chemical tanker rates historically fluctuate within a tight range, and rate declines in 2008-09 should be significantly less than for the dry bulk, tanker or container sectors. Investors can get exposure through BLTA, whose chemical tanker earnings are 80-90% of its operating profit. Oil and gas tanker earnings form the rest.

Initiate coverage with OUTPERFORM and sum-of-the-parts target price of
Rp900.

Longer-term investors could be handsomely rewarded. With earnings going into decline in 2009, CIMB are hard pressed to find near-term share-price catalysts. However, a global economic recovery by late 2009 and into 2010 should lift earnings and patient investors with a 12-month view could be handsomely rewarded.