The Indonesia stock market bounced higher again on Wednesday, one day after ending the two-day winning streak in which it had gained almost 50 points or 0.7 percent. The Jakarta Composite Index now sits just above the 7,255-point plateau and it may see additional support on Thursday.
The global forecast for the Asian markets is upbeat on an improved outlook for interest rates. The European and U.S. markets were solidly higher and the Asian bourses are expected to follow suit.
The JCI finished slightly higher on Wednesday following gains from the cement companies and mixed performances from the financial shares and resource stocks.
For the day, the index rose 13.90 points or 0.19 percent to finish at 7,255.76 after trading between 7,226.50 and 7,275.19.
Among the actives, Bank CIMB Niaga shed 0.54 percent, while Bank Mandiri skidded 1.16 percent, Bank Danamon Indonesia collected 0.78 percent, Bank Negara Indonesia added 0.40 percent, Bank Central Asia advanced 0.98 percent, Bank Maybank Indonesia soared 3.85 percent, Indosat Ooredoo Hutchison tanked 2.63 percent, Indocement rose 0.35 percent, Semen Indonesia was up 0.26 percent, Indofood Sukses Makmur strengthened 1.24 percent, United Tractors spiked 3.20 percent, Astra International accelerated 3.96 percent, Astra Agro Lestari improved 0.84 percent, Aneka Tambang climbed 1.15 percent, Jasa Marga surged 4.23 percent, Vale Indonesia rallied 1.63 percent, Timah tumbled 1.56 percent, Bumi Resources retreated 1.32 percent and Energi Mega Persada and Bank Rakyat Indonesia were unchanged.
The lead from Wall Street is broadly positive as the major averages opened higher on Wednesday and remained in the green throughout the session.
The Dow gained 99.46 points or 0.24 percent to finish at 40,842.79, while the NASDAQ surged 451.98 points or 2.64 percent to end at 17,599.40 and the S&P 500 rallied 85.86 points or 1.58 percent to close at 5,522.30.
The early rally on Wall Street reflected a positive reaction to the latest corporate earnings news from companies like Advanced Micro Devices (AMD), Starbucks (SBUX) and DuPont (DD).
Stocks continued to see strength after the Federal Reserve’s monetary policy announcement. While the Fed left interest rates unchanged, as expected, minor changes to the accompanying statement may hint at future rate cuts.
Fed Chair Jerome Powell said in his post-meeting press conference that a rate cut in September would be “on the table” if economic data continues on its current path.
Oil prices rose sharply Wednesday amid concerns about possible supply disruptions due to rising tensions in the Middle East, and on data showing a larger than expected drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for September ended up $3.18 or 4.3 percent at $77.91 a barrel.
Closer to home, Indonesia will release July consumer price data later today; in June, overall inflation was down 0.08 percent on month and up 2.51 percent on year, while core CPI rose an annual 1.90 percent.
Market Analysis
Indonesia Bourse May Extend Wednesday’s Gains
2024-08-01 01:30:22
