The Indonesia stock market has moved higher in two straight sessions, jumping almost 200 points or 3 percent along the way. The Jakarta Composite Index now rests just beneath the 6,800-point plateau although it may spin its wheels on Thursday.
The global forecast for the Asian markets suggests consolidation on profit taking, with oil and retail stocks leading the way lower. The European and U.S. markets were down and the Asian markets are tipped to follow that lead.
The JCI finished sharply higher on Wednesday following gains from the financial shares and cement stocks, while the resource companies were down.
For the day, the index surged 148.95 points or 2.24 percent to finish at 6,793.41 after trading between 6,648.94 and 6,804.91.
Among the actives, Bank Danamon Indonesia shed 0.42 percent, while Bank Negara Indonesia soared 3.55 percent, Bank Central Asia rallied 2.36 percent, Bank Mandiri collected 0.64 percent, Indosat plummeted 5.83 percent, Indocement spiked 3.12 percent, Semen Indonesia jumped 1.97 percent, United Tractors gained 0.75 percent, Astra International strengthened 1.43 percent, Energi Mega Persada retreated 1.67 percent, Bakrie Sumatera Plantations dropped 0.83 percent, Astra Agro Lestari lost 0.62 percent, Aneka Tambang added 0.42 percent, Vale Indonesia tanked 2.41 percent, Timah fell 0.30 percent, Bumi Resources tumbled 1,75 percent and Bank CIMB Niaga, Indofood Suskes and Bank Rakyat Indonesia were unchanged.
The lead from Wall Street is brutally negative as the major averages opened lower on Wednesday and saw the losses accelerate as the day progressed, ending deep in the red.
The Dow plummeted 1,164.52 points or 3.57 percent to finish at 31,490.07, while the NASDAQ plunged 566.37 points or 4.73 percent to close at 11,418.15 and the S&P 500 tumbled 165.17 points or 4.04 percent to end at 3,923.68.
Retail stocks led the markets lower, with the Dow Jones U.S. Retail Index plunging 7.7 percent to its lowest closing level in almost two years. Target (TGT) posted a particularly steep loss after the discount retailer reported quarterly earnings that missed expectations.
Substantial weakness was also visible among transportation stocks, as reflected by the 7.4 percent drop by the Dow Jones Transportation Average. Housing stocks also saw significant weakness on the day, dragging the Philadelphia Housing Sector Index down by 4.6 percent.
In economic news, the Commerce Department noted a modest decrease in new residential construction and building permits in April.
Crude oil futures settled lower on Wednesday despite data showing a drop in crude inventories last week. A stronger dollar amid rising prospects of sharper interest rate hikes by the Federal Reserve also contributed to the decline. West Texas Intermediate Crude oil futures for ended lower by $2.81 or about 2.5% at $109.59 a barrel.
Market Analysis
Lower Open Anticipated For Indonesia Stock Market
2022-05-19 02:00:16
