Higher Open Predicted For Indonesia Stock Market

The Indonesia stock market has tracked higher in three straight sessions, collecting more than 70 points or 1 percent along the way. The Jakarta Composite Index now sits just shy of the 6,970-point plateau and it’s likely to open higher again on Thursday.

The global forecast for the Asian markets suggests mild upside on improved optimism over the outlook for interest rates. European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The JCI finished slightly higher on Wednesday following weakness from the resource stocks and a mixed picture from the financial sector.

For the day, the index rose 8.82 points or 0.13 percent to finish at 6,966.66.

Among the actives, Bank CIMB Niaga skidded 1.15 percent, while Bank Mandiri collected 0.42 percent, Bank Danamon Indonesia added 0.68 percent, Bank Negara Indonesia gained 0.55 percent, Bank Central Asia shed 0.54 percent, Bank Rakyat Indonesia declined 1.34 percent, Indosat Ooredoo Hutchison dipped 0.26 percent, Indocement tumbled 2.02 percent, Indofood Suskes retreated 1.40 percent, United Tractors sank 0.76 percent, Astra International improved 0.78 percent, Astra Agro Lestari dropped 0.98 percent, Vale Indonesia slumped 0.83 percent, Timah lost 0.55 percent, Bumi Resources plunged 2.80 percent and Aneka Tambang, Semen Indonesia and Energi Mega Persada were unchanged.

The lead from Wall Street ends up positive as the major averages opened higher on Wednesday, survived some early volatility and managed to finish in the green.

The Dow added 37.57 points or 0.11 percent to finish at 34,890.24, while the NASDAQ jumped 75.55 points or 0.11 percent to close at 14,019.31 and the S&P 500 rose 17.24 points or 0.38 percent to end at 4,514.87.

The strength on Wall Street came following the release of a report from payroll processor ADP showing a notable slowdown in the pace of private sector job growth in August.

The slightly smaller than expected increase in private sector employment added to recent optimism about the outlook for interest rates.

Separately, revised data from the Commerce Department showed the U.S. economy grew less than previously estimated in the second quarter.

Crude oil prices climbed higher Wednesday after data showed a big drop in U.S. crude inventories last week. The dollar’s continued weakness and the impact of Hurricane Idalia on oil fields along Florida’s Gulf Coast also supported prices. West Texas Intermediate Crude oil futures for October rose $0.47 or 0.6 percent at $81.63 a barrel.