The Indonesia stock market headed south again on Wednesday, one session after snapping the four-day losing streak in which it had dropped more than 90 points or 1.5 percent. The Jakarta Composite Index now sits just beneath the 6,035-point plateau and it may take further damage again on Thursday.
The global forecast for the Asian markets is mixed and flat amidst a lack of strong catalysts. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.
The JCI finished modestly lower on Wednesday following losses from the financial shares and resource stocks.
For the day, the index dropped 53.30 points or 0.88 percent to finish at the daily low of 6,034.54 after peaking at 6,130.10.
Among the actives, Bank Danamon Indonesia tanked 2.28 percent, while Bank CIMB Niaga skidded 1.62 percent, Bank Negara Indonesia dropped 2.02 percent, Bank Central Asia was down 1.74 percent, Bank Mandiri, Indofood Suskes and United Tractors all retreated 2.43 percent, Bank Rakyat Indonesia plummeted 2.48 percent, Indosat tumbled 3.12 percent, Indocement climbed 1.62 percent, Astra International rose 0.20 percent, Astra Agro Lestari plunged 3.42 percent, Aneka Tambang shed 0.44 percent, Vale Indonesia declined 1.58 percent, Timah surrendered 2.67 percent, Bumi Resources jumped 1.69 percent and Semen Indonesia was unchanged.
The lead from Wall Street offers little guidance as the major averages opened mixed on Wednesday and hugged the unchanged line throughout the session, finally finishing that way.
The Dow shed 71.34 points or 0.21 percent to finish at 33,874.24, while the NASDAQ added 18.46 points or 0.13 percent to end at 14,271.73 and the S&P 500 dipped 4.60 points or 0.11 percent to close at 4,241.84.
The lackluster performance on Wall Street came as traders seemed reluctant to make significant moves amid uncertainty about the near-term outlook for the markets following recent volatility.
Recent comments from Federal Reserve Chair Jerome Powell have eased some concerns about the outlook for monetary policy that weighed on the markets last week; Powell downplayed the risk of inflation and stressed the central bank would not raise rates preemptively.
In economic news, the Commerce Department unexpectedly showed another steep drop in new home sales in the U.S. in May.
Oil prices rose on Wednesday after data showed a larger than expected decline in U.S. crude inventories last week. However, the possibility of increased output from major oil producers limited oil’s surge. West Texas Intermediate crude oil futures for August ended up $0.23 or 0.3 percent at $73.08 a barrel.
Closer to home, Indonesia will see May data for loan growth later today; in April, growth was at -2.28 percent on year.
Indonesia Stock Market May Test Support At 6,000 Points
2021-06-24 02:00:10
