Rebound Anticipated For Indonesia Stock Market

The Indonesia stock market on Tuesday snapped the two-day winning streak in which it had climbed more than 115 points or 2 percent. The Jakarta Composite Index now rests just beneath the 6,090-point plateau although it’s likely to bounce higher again on Wednesday.

The global forecast for the Asian markets is flat to slightly higher, again supported by oil and technology stocks. The European markets were mixed and the U.S. bourse were slightly higher and the Asian markets figure to split the difference.

The JCI finished modesty lower on Tuesday following losses from the financial shares, resource stocks and energy producers.

For the day, the index sank 20.33 points or 0.33 percent to finish at 6,089.50 after trading between 6,053.57 and 6,138.50.

Among the actives, Bank CIMB Niaga skidded 1.04 percent, while Bank Negara Indonesia dipped 0.47 percent, Bank Central Asia rose 0.15 percent, Bank Mandiri tanked 2.51 percent, Bank Rakyat Indonesia weakened 1.77 percent, Indosat tumbled 2.31 percent, Indocement plunged 3.07 percent, Semen Indonesia declined 1.83 percent, Indofood Suskes climbed 1.20 percent, United Tractors retreated 1.05 percent, Astra International slid 0.49 percent, Astra Agro Lestari dropped 0.90 percent, Aneka Tambang sank 0.87 percent, Vale Indonesia fell 0.60 percent, Timah lost 2.02 percent, Bumi Resources surrendered 1.85 percent and Bank Danamon Indonesia was unchanged.

The lead from Wall Street is cautiously optimistic as the major averages opened solidly higher on Tuesday but faded as the day progressed, finally finishing with small gains.

The Dow added 30.55 points or 0.09 percent to finish at 35,366.26, while the NASDAQ climbed 77.15 points or 0.52 percent to end at 15,019.80 and the S&P 500 rose 6.70 points or 0.15 percent to close at 4,486.23.

The higher open on Wall Street came hopes that the FDA’s approval of the Pfizer/BioNTech COVID-19 vaccine could boost vaccination rates in the U.S. and spur economic growth.

In economic news, the Commerce Department reported a rebound in U.S. new home sales in July.

Investors also are looking ahead to a highly-anticipated speech by Fed Chairman Jerome Powell during the virtual Jackson Hole Symposium on Friday for more clarity on the Fed’s tapering timeline.

Crude oil prices moved higher Tuesday for a second straight session as concerns for energy demand eased signs of falling coronavirus infections in China, India and some other countries. West Texas Intermediate Crude oil futures for October ended up $1.90 or 3 percent at $67.54 a barrel.