Indonesia Stocks Expected To Remain Rangebound

The Indonesia stock market has alternated between positive and negative finishes through the last five 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 6,960-point plateau although it figures to bounce higher again on Friday.

The global forecast for the Asian markets is upbeat amidst upward momentum after brutal selling earlier in the week. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The JCI finished modestly lower on Thursday following losses from the financials and mixed performances from the resource and cement companies.

For the day, the index lost 28.01 points or 0.40 percent to finish at 6,964.38 after trading between 6,949.17 and 7,032.70.

Among the actives, Bank CIMB Niaga retreated 1.35 percent, while Bank Negara Indonesia declined 1.50 percent, Bank Central Asia tanked 2.44 percent, Indocement climbed 1.17 percent, Semen Indonesia strengthened 1.12 percent, Indofood Suskes fell 0.41 percent, United Tractors advanced 1.00 percent, Astra International was up 0.39 percent, Energi Mega Persada skyrocketed 8.78 percent, Aneka Tambang tumbled 1.67 percent, Vale Indonesia lost 0.45 percent, Timah soared 3.80 percent, Bumi Resources surged 7.60 percent and Bank Danamon Indonesia, Bank Mandiri, Astra Agro Lestari, Indosat, Bakrie Sumatera Plantations and Bank Rakyat Indonesia were unchanged.

The lead from Wall Street ends up solidly positive as the major averages shook off early directionless trade, accelerating in the afternoon to finish near daily highs.

The Dow surged 417.66 points or 1.23 percent to finish at 34,480.76, while the NASDAQ soared 178.23 points or 1.33 percent to end at 13,614.78 and the S&P 500 climbed 53.81 points or 1.23 percent to close at 4,411.67.

The strength that emerged on Wall Street reflects recent upward momentum, with the major averages extending the rally seen over the two previous sessions. The rebound has helped lift stocks well off their recent lows but also well shy of record highs.

The markets also continued to digest the Federal Reserve’s decision to raise interest rates for the first time since December 2018 on Wednesday. The Fed raised rates by 25 basis points to 0.25 to 0.5 percent and signaled several more rate hikes are likely over the coming months.

In economic news, the Labor Department said first-time claims for U.S. unemployment benefits fell more than expected last week. Also, the Commerce Department said housing starts rebounded than expected in February.

Crude oil prices climbed higher Thursday after the International Energy Agency warned of a possible supply loss from Russia in the coming weeks due to the sanctions imposed on the country. West Texas Intermediate Crude oil futures for April ended higher by $7.94 or 8.4 percent at $102.98 a barrel.