Indonesia Stock Market May Extend Winning Streak

The Indonesia stock market has moved higher in four straight sessions, picking up more than 55 points or 0.8 percent along the way. The Jakarta Composite Index now rests just above the 6,930-point plateau and it’s tipped to open in the green again on Thursday.

The global forecast for the Asian markets is mixed to higher on optimism over the outlook for interest rates. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The JCI finished slightly higher on Wednesday as gains from the food and financial stocks were offset by weakness from the cement and resource companies.

For the day, the index gained 9.56 points or 0.14 percent to finish at 6,931.75.

Among the actives, Bank CIMB Niaga added 0.29 percent, while Bank Mandiri collected 0.83 percent, Bank Danamon Indonesia rallied 1.43 percent, Bank Negara Indonesia shed 0.48 percent, Bank Rakyat Indonesia strengthened 1.45 percent, Indosat Ooredoo Hutchison perked 0.24 percent, Indocement retreated 1.49 percent, Semen Indonesia sank 0.76 percent, Indofood Suskes dropped 0.74 percent, United Tractors rose 0.39 percent, Energi Mega Persada skidded 0.79 percent, Astra Agro Lestari slid 0.34 percent, Vale Indonesia stumbled 1.33 percent, Timah slumped 1.25 percent, Bumi Resources declined 1.53 percent and Astra International, Bank Central Asia and Aneka Tambang were unchanged.

The lead from Wall Street ends up positive as the major averages opened higher on Wednesday, slipped into the red midday but rallied late to end in positive territory.

The Dow added 65.57 points or 0.19 percent to finish at 33,804.87, while the NASDAQ jumped 96.83 points or 0.71 percent to close at 13,659.68 and the S&P 500 gained 18.71 points or 0.43 percent to end at 4,376.95.

The higher close on Wall Street came amid a continued decline by treasury yields, with yields pulling back further off their highest levels in over 16 years. Treasuries have recently benefited from their appeal as a safe haven amid the deadly conflict between Hamas and Israel.

Meanwhile, traders largely shrugged off a Labor Department report showing producer prices in the U.S. increased by slightly more than expected in September.

The Federal Reserve also released the minutes of its latest monetary policy meeting on Wednesday, reiterating that a majority of participants expect one more interest rate hike will likely be appropriate.

Crude oil futures settled lower on Wednesday, extending losses from the previous session, as Saudi Arabia’s pledge to help stabilize the market outweighed concerns about supply disruptions amid the tensions in the Middle East. West Texas Intermediate Crude oil futures for November sank $83.49 a barrel, down $2.48 or 2.9 percent.