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Indonesia Bourse Tipped To See Renewed Selling Pressure

The Indonesia stock market on Thursday ended the four-day losing streak in which it had surrendered more than 230 points or 3.5 percent. The Jakarta Composite Index now rests just beneath the 6,445-point plateau although it may head south again on Friday.

The global forecast for the Asian markets is negative after U.S. Donald Trump officially imposed tariffs on steel and aluminum imports - while tumbling crude oil prices add to the soft sentiment. The European and U.S. markets were up, but the Asian markets are expected to head lower.

The JCI finished sharply higher on Thursday following gains from the food, cement and financial sectors.

For the day, the index jumped 74.75 points or 1.17 percent to finish at 6,443.02 after trading between 6,371.97 and 6,443.06. There were 205 gainers and 164 decliners, with 113 stocks finishing unchanged.

Among the actives, Voksel Electric tumbled 2.59 percent, while Tiga Pilar Sejahtera Food spiked 2.44 percent, Bank MNC Internasional dropped 1.92 percent, XL Axiata skidded 1.45 percent, Astra Graphia jumped 1.40 percent, Lotte Chemical shed 0.96 percent, Bank Danamon Indonesia soared 5.69 percent, Bank Mandiri collected 2.21 percent, Vale Indonesia fell 2.62 percent, Indofood gained 0.86 percent, Indocement climbed 1.13 percent and Bumi Resources, Jasa Marga and Bank Pan Indonesia were unchanged.

The lead from Wall Street is firm as stocks fluctuated on Thursday, bouncing back and forth across the unchanged line before closing in positive territory.

The Dow added 93.85 points or 0.38 percent to 24,895.21, while the NASDAQ gained 31.30 points or 0.42 percent and the S&P 500 was up 12.17 points or 0.45 percent to 2,738.97.

The higher close came after Trump officially signed proclamations imposing tariffs on steel and aluminum imports.

The choppy trading also came as traders looked ahead to the release of the Labor Department's closely watched monthly jobs report later today - which may have a bearing on the FOMC's interest rate forecast.

Ahead of the monthly report, the Labor Department reported a bigger than expected rebound in initial jobless claims in the week ended March 3.

Traders also digested the European Central Bank's latest monetary policy decision, with the ECB leaving rates unchanged, as expected. The ECB's accompanying statement removed a phrase indicating a willingness to increase its asset purchase program if necessary.

Crude oil futures tumbled Thursday on fears that the U.S. dollar will strengthen on rising interest rates. April WTI oil was down $1.03 or 1.7 percent to settle at $60.12/bbl, the lowest in three weeks.

by RTTNews Staff Writer

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