Indonesia Stock Market Due For A Lift On Thursday

The Indonesia stock market has finished lower in three straight sessions, sinking almost 80 points or 1.3 percent along the way. The Jakarta Composite Index now sits just above the 6,275-point plateau although it may find support on Thursday.

The global forecast for the Asian markets is positive following upbeat guidance from the FOMC. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The JCI finished modestly lower on Wednesday following losses from the financial shares and a mixed picture from the resource stocks.

For the day, the index lost 32.47 points or 0.51 percent to finish at 6,277.23 after trading between 6,268.84 and 6,321.34.

Among the actives, Bank Danamon Indonesia shed 0.32 percent, while Bank CIMB Niaga tanked 3.54 percent, Bank Negara Indonesia declined 2.01 percent, Bank Central Asia dipped 0.23 percent, Bank Mandiri lost 0.38 percent, Bank Rakyat Indonesia surrendered 1.06 percent, Indosat tumbled 2.02 percent, Telkom Indonesia advanced 0.89 percent, Indocement added 0.59 percent, Semen Indonesia fell 0.45 percent, Indofood Suskes dropped 0.78 percent, United Tractors sank 0.59 percent, Astra International gained 0.45 percent, Astra Agro Lestari skidded 1.34 percent, Aneka Tambang climbed 1.32 percent, Vale Indonesia retreated 1.10 percent, Timah surged 3.11 percent and Bumi Resources was unchanged.

The lead from Wall Street is firm as stocks moved higher Wednesday following the FOMC’s guidance, sending the Dow and S&P 500 to fresh record closing highs.

The Dow jumped 189.42 points or 0.58 percent to finish at 33,015.37, while the NASDAQ gained 53.63 points or 0.40 percent to end at 13,525.20 and the S&P 500 rose 11.41 points or 0.29 percent to close at 3,974.12.

The higher close on Wall Street came after the Federal Reserve forecast stronger economic growth and higher inflation this year but indicated it expects to keep interest rates at near-zero levels through 2023.

The Fed provided updated forecasts along with the announcement of the its universally expected decision to maintain the target range for the federal funds rate at zero to 0.25 percent.

The central bank also reiterated it plans to continue purchasing bonds at a rate of at least $120 billion per month until “substantial further progress” has been made toward its policy goals.

Crude oil futures settled lower on Wednesday, weighed down by another jump in U.S. crude stockpiles and concerns over the outlook for energy demand. West Texas Intermediate Crude oil futures for April ended down $0.20 or 0.3 percent at $64.60 a barrel.

Closer to home, the central bank in Indonesia will wrap up its monetary policy meeting later today and then announce its decision on interest rates. The bank is expected to keep its benchmark lending rate unchanged at 3.50 percent, while the deposit facility rate (2.75 percent) and lending facility rate (4.25 percent) also are called unchanged.

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