Higher Open Predicted For Indonesia Stock Market

The Indonesia stock market on Tuesday ended the three-day slide in which it had fallen more than 100 points or 1.4 percent. The Jakarta Composite Index now rests just shy of the 6,810-point plateau and it’s tipped to extend its gains on Wednesday.

The global forecast for the Asian markets is broadly positive on easing geopolitical concerns and bargain hunting. The European and U.S. markets finished firmly higher and the Asian markets are expected to open in similar fashion.

The JCI finished sharply higher on Tuesday following gains from the energy producers and financials, while the resource stocks were mixed.

For the day, the index climbed 73.01 points or 1.08 percent to finish at the daily high of 6,807.50 after moving as low as 6,727.36.

Among the actives, Bank Danamon Indonesia advanced 0.83 percent, while Bank Negara Indonesia rallied 2.92 percent, Bank Central Asia strengthened 2.27 percent, Bank Mandiri climbed 1.28 percent, Bank Rakyat Indonesia collected 0.45 percent, Indosat improved 0.92 percent, Indocement added 0.93 percent, Semen Indonesia increased 1.04 percent, Indofood Suskes rose 0.39 percent, United Tractors spiked 3.09 percent, Astra International jumped 3.77 percent, Energi Mega Persada skyrocketed 18.79 percent, Bakrie Sumatera Plantations accelerated 9.45 percent, Astra Agro Lestari surged 5.83 percent, Aneka Tambang shed 0.53 percent, Vale Indonesia lost 0.64 percent, Timah retreated 1.43 percent, Bumi Resources soared 6.17 percent and Bank CIMB Niaga was unchanged.

The lead from Wall Street is firm as the major averages opened higher on Tuesday and stayed that way throughout the session, finishing solidly in the green.

The Dow surged 422.67 points or 1.22 percent to finish at 34,988.84, while the NASDAQ soared 348.84 points or 2.53 percent to end at 14,139.76 and the S&P 500 spiked 69.40 points or 1.58 percent to close at 4,471.07.

The rebound on Wall Street came amid easing geopolitical concerns following news Russia is pulling back some troops from the Ukrainian border. Concerns about a destabilizing conflict between Russia and the Ukraine have weighed on stocks over the past few sessions.

Meanwhile, traders largely shrugged off a report from the Labor Department showing U.S. producer prices jumped by much more than expected in January.

Crude oil prices tumbled on Tuesday as worries about supply disruptions eased amid the de-escalation of tensions between Russia and Ukraine. West Texas Intermediate Crude oil futures for March ended down by $3.39 or 3.6 percent at $92.07 a barrel.