The Indonesia stock market has alternated between positive and negative finishes through the last five trading days since the end of the two-day winning streak in which it had gathered more than 95 points or 1.3 percent. The Jakarta Composite Index now sits just above the 6,640-point plateau although it’s expected to bounce higher again on Thursday.
The global forecast for the Asian markets is positive on optimism over the outlook for interest rates. The European and U.S. markets were solidly higher and the Asian markets are expected to open in similar fashion.
The JCI finished sharply lower on Wednesday following losses from the financial shares, cement stocks and resource companies.
For the day, the index stumbled 109.79 points or 1.63 percent to finish at 6,642.42 after trading between 6,639.82 and 6,773.98.
Among the actives, Bank CIMB Niaga lost 0.58 percent, while Bank Mandiri shed 0.44 percent, Bank Danamon Indonesia skidded 1.09 percent, Bank Negara Indonesia collected 0.63 percent, Bank Central Asia tumbled 1.71 percent, Bank Rakyat Indonesia declined 2.62 percent, Indocement tanked 1.89 percent, Semen Indonesia dropped 0.82 percent, United Tractors plummeted 4.08 percent, Astra International added 0.43 percent, Energi Mega Persada slumped 2.46 percent, Astra Agro Lestari sank 0.71 percent, Aneka Tambang plunged 3.23 percent, Vale Indonesia stumbled 2.22 percent, Timah surrendered 5.80 percent, Bumi Resources crashed 5.31 percent and Indosat Ooredoo Hutchison and Indofood Suskes were unchanged.
The lead from Wall Street is strong as the major averages opened flat on Wednesday but took off as the day progressed, ending near session highs.
The Dow surged 221.71 points or 0.67 percent to finish at 33,274.58, while the NASDAQ rallied 210.23 points or 1.64 percent to end at 13,061.47 and the S&P 500 climbed 44.06 points or 1.05 percent to close at 4,237.86.
The strength on Wall Street came as stocks reacted positively to the Federal Reserve’s widely expected decision to leave interest rates unchanged.
The accompanying statement suggested the Fed is still considering additional rate hikes in an effort to return inflation to its 2 percent objective, but traders seem optimistic the recent cycle of increase is over.
In economic news, payroll processor ADP said private sector employment in the U.S. increased less than expected in October. Also, the Institute for Supply Management said manufacturing activity in the U.S. unexpectedly contracted at a faster rate last month.
Oil futures settled lower on Wednesday, weighed down by concerns that higher borrowing costs will likely hurt growth and the outlook for fuel demand. West Texas Intermediate Crude oil futures for December ended down $$0.58 or 0.7 percent at $80.44 a barrel.
Market Analysis
Indonesia Shares Tipped To Remain Rangebound
2023-11-02 01:30:18
