The Indonesia stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day winning streak in which it had gathered almost 110 points or 1.7 percent. The Jakarta Composite Index now rests just above the 6,990-point plateau and it’s predicted to open in the green again on Thursday.
The global forecast for the Asian markets is broadly positive on slightly easing geopolitical concerns and more bargain hunting, especially among technology stocks. The European and U.S. markets were solidly higher and the Asian bourses are tipped to follow suit.
The JCI finished sharply higher on Wednesday following gains from the financial shares, cement companies and resource stocks.
For the day, the index advanced 74.21 points or 1.07 percent to finish at the daily high of 6,992.40 after trading as low as 6,946.84.
Among the actives, Bank Danamon Indonesia and Bank Rakyat Indonesia both collected 0.87 percent, while Bank CIMB Niaga spiked 3.26 percent, Bank Negara Indonesia soared 3.41 percent, Bank Central Asia added 0.61 percent, Bank Mandiri rallied 2.25 percent, Indosat shed 0.48 percent, Indocement rose 0.23 percent, Semen Indonesia added 075 percent, Indofood Suskes climbed 1.65 percent, United Tractors jumped 2.15 percent, Astra International increased 1.59 percent, Energi Mega Persada surged 4.96 percent, Astra Agro Lestari accelerated 4.29 percent, Aneka Tambang advanced 0.84 percent, Timah improved 0.96 percent and Bumi Resources, Vale Indonesia and Bakrie Sumatera Plantations were unchanged.
The lead from Wall Street is upbeat as the major averages opened sharply higher on Wednesday and remained firmly in the green throughout the trading day.
The Dow surged 518.76 points or 1.55 percent to finish at 34,063.10, while the NASDAQ soared 487.93 points or 3.77 percent to end at 13,437.55 and the S&P 500 jumped 95.41 points or 2.24 percent to close at 4,357.86.
The rally came after the Fed announced its widely expected decision to raise interest rates for the first time since December of 2018 in an effort to combat inflation at 40-year highs. The Fed raised the target range for the federal funds rate by 25 basis points to 0.25 to 0.5 percent.
The central bank also predicted ongoing rate hikes will be appropriate, with the Fed’s latest projections pointing to an interest rate of 1.9 percent by the end of the year. It also expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting.
Optimism about a potential diplomatic solution to the ongoing Russian invasion of Ukraine also generated buying interest. Ukrainian President Volodymyr Zelenskyy said during an address to the nation that the positions in the negotiations were beginning to “sound more realistic.”
Crude oil prices dropped Wednesday, extending losses to a third straight session after data showed a surprise surge in U.S. crude inventories, and amid hopes of some progress in Russia-Ukraine peace talks. West Texas Intermediate Crude oil futures for April ended lower by $1.40 or 1.5 percent at $95.04 a barrel.
Closer to home, the central bank in Indonesia will conclude its monetary policy meeting today and then announce its decision on interest rates. The bank is expected to maintain the status quo for its benchmark lending rate (3.50 percent), deposit facility rate (2.75 percent) and lending facility rate (4.25 percent).
Market Analysis
Higher Open Expected For Indonesia Stock Market
2022-03-17 02:00:23
