The Indonesia stock market bounced higher again on Wednesday, one day after halting the six-day winning streak in which it had climbed more than 120 points or 1.9 percent. The Jakarta Composite Index now sits just above the 6,625-point plateau and it figures to pick up steam on Thursday.
The global forecast for the Asian markets is upbeat following results of the FOMC’s monetary policy meeting. The European and U.S. markets were solidly higher and the Asian bourses figure to open in similar fashion.
The JCI finished slightly higher on Wednesday as gains from the financials and energy companies were dented by weakness from the resource stocks.
For the day, the index rose 10.62 points or 0.16 percent to finish at 6,626.26 after trading between 6,610.45 and 6,662.84.
Among the actives, Bank Danamon Indonesia collected 0.42 percent, while Bank CIMB Niaga climbed 1.03 percent, Bank Mandiri jumped 1.39 percent, Bank Rakyat Indonesia rallied 1.69 percent, Indosat skidded 1.20 percent, Indocement advanced 1.05 percent, Semen Indonesia shed 0.65 percent, Indofood Suskes gained 0.78 percent, United Tractors declined 1.36 percent, Astra International soared 2.13 percent, Energi Mega Persada soared 3.77 percent, Bakrie Sumatera Plantations plummeted 4.55 percent, Astra Agro Lestari retreated 1.52 percent, Aneka Tambang fell 0.44 percent, Vale Indonesia tumbled 1.27 percent, Timah tanked 2.27 percent, Bumi Resources surrendered 1.43 percent and Bank Negara Indonesia and Bank Central Asia were unchanged.
The lead from Wall Street is broadly positive as the major averages opened slightly lower on Wednesday but then surged in the afternoon to finish sharply higher.
The Dow soared 383.25 points or 1.08 percent to finish at 35,927.43, while the NASDAQ spiked 327.94 points or 2.15 percent to end at 15,565.58 and the S&P 500 jumped 75.76 points or 1.63 percent to close at 4,709.85.
The late-day rally on Wall Street came after the Fed announced its widely expected decision to accelerate the pace of reductions to its asset purchases program. Citing inflation developments and further improvement in the labor market, the Fed said it has decided to reduce the monthly pace of its net asset purchases by $30 billion per month, double the previously announced $15 billion per month.
The Fed said it expects similar reductions in the pace of net asset purchases will likely be appropriate each month, pointing to an end to the program next March. Analysts partly attributed the subsequent rally to relief that the Fed was not more aggressive in accelerating the timetable for halting its asset purchases.
Meanwhile, the Fed also announced its widely expected decision to keep the target range for the federal funds rate at zero to 0.25 percent. The central bank’s latest projections forecast as many three rate hikes in 2022 compared to the lone rate hike forecast in September.
Despite the prospect of sooner than expected rate hikes, analysts suggested traders were pleased with the increased level of certainty provided by the Fed’s latest projections.
Crude oil futures settled higher on Wednesday after the Energy Information Administration (EIA) said crude inventories in the U.S. dropped by 4.6 million barrels last week. West Texas Intermediate crude oil futures for January ended up by $0.14 or 0.2 percent at $70.87 a barrel.
Closer to home, the central bank in Indonesia will wrap up its monetary policy meeting today and then announce its decision on interest rates; the bank is widely expected to keep its benchmark lending rate unchanged at 3.50 percent.
Market Analysis
Higher Open Predicted For Indonesia Stock Market
2021-12-16 02:00:11
