Higher Open Predicted For Indonesia Stock Market

The Indonesia stock market on Thursday ended the two-day slide in which it had slumped more than 100 points or 1.3 percent. The Jakarta Composite Index now sits just beneath the 6,630-point plateau and it may add to its winnings on Friday.

The global forecast for the Asian markets is upbeat after the release of encouraging U.S. inflation data and what it means for interest rates, although it may already have largely been priced in. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The JCI finished modestly higher on Thursday following gains from the financials and cement companies, while the resource stocks were mixed.

For the day, the index added 45.48 points or 0.69 percent to finish at 6,629.93.

Among the actives, Bank Danamon Indonesia strengthened 1.59 percent, while Bank CIMB Niaga spiked 2.22 percent, Bank Negara Indonesia increased 1.18 percent, Bank Central Asia collected 0.62 percent, Bank Mandiri soared 2.79 percent, Bank Rakyat Indonesia accelerated 2.74 percent, Indosat Ooredoo Hutchison fell 0.41 percent, Indocement improved 1.23 percent, Semen Indonesia skyrocketed 5.71 percent, Indofood Suskes lost 0.75 percent, United Tractors shed 0.50 percent, Astra International rallied 2.39 percent, Energi Mega Persada declined 1.49 percent, Astra Agro Lestari added 0.63 percent, Aneka Tambang surged 2.90 percent, Timah gathered 1.29 percent, Bumi Resources plunged 3.40 percent and Vale Indonesia was unchanged.

The lead from Wall Street is upbeat as the major averages shook off early weakness on Thursday and finally settled solidly in positive territory.

The Dow climbed 216.96 points or 0.64 percent to finish at 34,189.97, while the NASDAQ gained 69.43 points or 0.64 percent to close at 11,001.10 and the S&P 500 rose 13.56 points or 0.34 percent to end at 3,983.17.

The strength that emerged on Wall Street followed the release of highly anticipated consumer price inflation data, which largely was in line with forecasts.

The slower price growth eased concerns about the outlook for interest rates, although the Federal Reserve is still widely expected to raise rates by at least 25 basis points at its next meeting.

Oil futures settled higher on Thursday, gaining for a sixth straight session on a weaker dollar and data showing a slowdown in U.S. inflation. West Texas Intermediate Crude oil futures for February added $0.98 or 1.3 percent at $78.39 a barrel.