The Indonesia stock market headed south again on Wednesday, one day after ending the two-day slide in which it had slipped more than 30 points or 0.4 percent. The Jakarta Composite Index now sits just above the 7,330-point plateau although it figures to rebound again on Thursday.
The global forecast for the Asian markets is broadly positive on increased optimism over the outlook for interest rates. The European markets were mixed and flat and the U.S. bourses were sharply higher and the Asian markets figure to follow the latter lead.
The JCI finished slightly lower on Wednesday as losses from the resource stocks were mitigated by support from the financial and cement shares.
For the day, the index eased 5.62 points or 0.08 percent to finish at 7,331.13 after trading between 7,295.35 and 7,343.46.
Among the actives, Bank CIMB Niaga rallied 2.26 percent, while Bank Mandiri jumped 1.86 percent, Bank Negara Indonesia collected 0.43 percent, Bank Central Asia shed 0.49 percent, Bank Rakyat Indonesia strengthened 1.67 percent, Indosat Ooredoo Hutchison sank 0.83 percent, Semen Indonesia improved 1.33 percent, Indofood Sukses Makmur added 0.78 percent, United Tractors gained 0.72 percent, Astra International advanced 0.96 percent, Energi Mega Persada tanked 2.65 percent, Astra Agro Lestari shed 0.72 percent, Vale Indonesia declined 1.67 percent, Timah plummeted 7.23 percent and Bumi Resources, Bank Danamon Indonesia, Indocement and Aneka Tambang were unchanged.
The lead from Wall Street ends up positive as the major averages opened flat on Wednesday and spent most of the day that way before a late surge boosted them firmly into the green and to record closing highs.
The Dow surged 401.37 points or 1.03 percent to finish at 39,512.13, while the NASDAQ rallied 202.62 points or 1.25 percent to end at 16,369.41 and the S&P 500 gained 46.11 points or 0.89 percent to close at 5,224.62.
The rally on Wall Street came after the Fed announced its widely expected decision to leave interest rates unchanged but also maintained its forecast for three rate cuts this year – which had been in some doubt.
The Fed said it again maintained the target range for the federal funds rate at 5.25 to 5.50 percent, but the latest projections suggest Fed officials expect rates to be lowered to a range of 4.50 to 4.75 percent by the end of 2024.
Crude oil prices fell sharply on Wednesday as traders chose to take some profits following recent gains, while a firm dollar also weighed on oil prices. West Texas Intermediate Crude oil futures for April slumped $1.79 or 2.1 percent at $81.68 a barrel.
Market Analysis
Indonesia Stock Market May Reverse Wednesday’s Losses
2024-03-21 01:31:17
