Overbought Jakarta Stock Market Called Higher On Thursday

The Indonesia stock market had finished higher in five straight sessions, advancing more than 270 points or 5.5 percent along the way. The Jakarta Composite Index now sits just above the 6,030-point plateau and it’s expected to at least open higher on Thursday.

The global forecast for the Asian markets suggests mild upside, supported by crude oil prices. The European and U.S. markets were slightly higher and the Asian bourses are tipped to open in similar fashion.

The JCI finished sharply higher on Wednesday following gains from the financial shares, resource stocks and cement companies.

For the day, the index spiked 84.12 points or 1.41 percent to finish at the daily high of 6,031.58 after trading between 5,991.51.

Among the actives, Bank Danamon Indonesia rallied 3.43 percent, while Bank CIMB Niaga climbed 1.54 percent, Bank Negara Indonesia increased 2.78 percent, Bank Central Asia collected 1.41 percent, Bank Mandiri and Bumi Resources both gathered 1.67 percent, Indosat accelerated 4.33 percent, Indocement improved 2.07 percent, Semen Indonesia skyrocketed 7.47 percent, Indofood Suskes gained 1.57 percent, United Tractors soared 5.43 percent, Astra International was up 1.43 percent, Astra Agro Lestari jumped 2.83 percent, Aneka Tambang spiked 4.08 percent, Vale Indonesia improved 1.48 percent, Timah added 1.56 percent, Perusahaan Gas surged 7.62 percent and Bank Rakyat Indonesia was unchanged.

The lead from Wall Street is cautiously optimistic as stocks spent much of Wednesday’s session bouncing back and forth across the unchanged line before finally ending slightly higher.

The Dow added 25.07 points or 0.07 percent to finish at 34,600.38, while the NASDAQ rose 19.85 points or 0.14 percent to end at 13,756.33 and the S&P 500 was up 6.08 points or 0.14 percent to close at 4,208.12.

The early strength on Wall Street partly reflected continued optimism about the outlook for the global economy following Tuesday’s upbeat manufacturing data although trading activity remained light amid lingering inflation concerns.

The Labor Department’s looming monthly jobs report also kept some traders on the sidelines ahead of the release of the closely watched data on Friday.

Traders largely shrugged off the Federal Reserve’s Beige Book, which said the U.S. economy increased at a somewhat faster rate from early April to late May due in part to the positive effects of increased Covid-19 vaccination rates and relaxed social distancing measures.

Crude oil prices rose sharply on Wednesday, extending gains from the previous session, amid rising hopes about a pickup in energy demand and on the decision by OPEC to gradually increase crude production. West Texas Intermediate Crude oil futures for July ended up $1.11 or 1.6 percent at $68.83 a barrel, the highest since October 2018.

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