The Indonesia stock market on Wednesday ended the two-day slide in which it had fallen almost 55 points or 0.9 percent. The Jakarta Composite Index now rests just beneath the 6,120-point plateau although it’s got a weak lead for Thursday.
The global forecast for the Asian markets suggests consolidation on concerns over the outlook for interest rates and sinking crude oil prices. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.
The JCI finished modestly higher on Wednesday as gains from the financials and cement stocks were capped by weakness from the resource companies.
For the day, the index improved 30.24 points or 0.50 percent to finish at 6,118.15 after trading between 6,040.60 and 6,136.28.
Among the actives, Bank Danamon Indonesia collected 0.44 percent, while Bank Negara Indonesia surged 5.34 percent, Bank Central Asia accelerated 2.80 percent, Bank Mandiri climbed 1.26 percent, Bank Rakyat Indonesia rallied 3.56 percent, Indosat plunged 4.78 percent, Indocement soared 4.19 percent, Semen Indonesia spiked 4.14 percent, Indofood Suskes gained 0.79 percent, United Tractors tanked 2.23 percent, Astra International improved 2.96 percent, Astra Agro Lestari shed 0.59 percent, Aneka Tambang was up 0.42 percent, Vale Indonesia lost 0.49 percent, Timah fell 0.34 percent, Bumi Resources tumbled 1.82 percent, Bukit Asam plummeted 3.43 percent and Bank CIMB Niaga was unchanged.
The lead from Wall Street is negative as the major averages opened slightly lower on Wednesday and hugged the line for much of the day but then accelerated into the red toward the close.
The Dow tumbled 382.59 points or 1.08 percent to finish at 34,960.69, while the NASDAQ dropped 130.27 points or 0.89 percent to close at 14,525.91 and the S&P 500 sank 47.81 points or 1.07 percent to end at 4,400.27.
The sell-off on Wall Street came as the Fed minutes revealed most officials at the central bank’s July monetary policy meeting believe it will be appropriate to begin tapering asset purchases this year.
The minutes showed participants also expressed a range of views on the appropriate pace of tapering asset purchases once economic conditions satisfied the “substantial further progress” criterion.
Reflecting the recent surge in new cases of the delta variant of the coronavirus, several participants noted their views on the appropriate path of asset purchases could change if the economic effects of the new strains of the virus turn out to be notably worse than anticipated.
Crude oil prices drifted lower Wednesday on concerns about the outlook for energy demand amid the surge in the delta variant of the coronavirus in several countries. West Texas Intermediate Crude oil futures for September ended down $1.13 or 1.7 percent at $65.46 a barrel, the lowest close since May 21.
Closer to home, the central bank in Indonesia will wrap up its monetary policy meeting today and then announce its decision on interest rates. The bank is widely expected to keep its benchmark lending rate steady at 3.5 percent.
Market Analysis
Indonesia Stock Market Has A Red Light For Thursday’s Trade
2021-08-19 02:00:40
