logo
  

Indonesia Stock Market Tipped To End Losing Streak

The Indonesia stock market has finished lower in consecutive trading days, slipping more than 50 points or 0.8 percent along the way. The Jakarta Composite Index now rests just beneath the 6,650-point plateau although it's expected to stop the bleeding on Wednesday.

The global forecast for the Asian markets is positive, with support expected from the oil and technology stocks. The European and U.S. markets were up and the Asian markets are tipped to open in similar fashion.

The JCI finished modestly lower on Tuesday following losses from the financial shares and resource stocks.

For the day, the index lost 43.15 points or 0.64 percent to finish at 6,647.97 after trading between 6,636.50 and 6,727.77.

Among the actives, Bank Danamon Indonesia shed 0.42 percent, while Bank CIMB Niaga lost 0.52 percent, Bank Negara Indonesia fell 0.35 percent, Bank Central Asia jumped 1.32 percent, Bank Rakyat Indonesia dropped 0.72 percent, Indosat plunged 4.03 percent, Semen Indonesia tumbled 2.11 percent, Indofood Suskes jumped 1.95 percent, United Tractors dipped 0.23 percent, Astra International advanced 0.88 percent, Energi Mega Persada retreated 1.98 percent, Bakrie Sumatera Plantations sank 0.89 percent, Astra Agro Lestari rallied 2.53 percent, Aneka Tambang plummeted 6.31 percent, Vale Indonesia tanked 5.76 percent, Timah cratered 6.38 percent and Bumi Resources, Bank Mandiri and Indocement were unchanged.

The lead from Wall Street is firm as the major averages opened lower on Tuesday and were directionless through the morning but accelerated into the green in the afternoon, finishing near daily highs.

The Dow jumped 183.15 points or 0.51 percent to finish at 36,252.02, while the NASDAQ surged 210.62 points or 1.41 percent to end at 15,153.82 and the S&P 500 gained 42.78 points or 0.92 percent to close at 4,713.07.

The turnaround on Wall Street came after Federal Reserve Chair Jerome Powell testified before a Senate Banking Committee hearing on his nomination for another term. Powell highlighted elevated inflation as a result of supply chain issues and said the Fed would use all of its tools to prevent higher inflation from becoming entrenched.

While Powell's remarks have been described as hawkish, they are not seen as indicating the Fed will be more aggressive than already suggested by the minutes of the central bank's latest meeting.

Treasury yields moved to the downside in reaction to Powell's testimony, with the benchmark ten-year yield continuing to give ground after reaching its highest intraday level since January 2020 on Monday.

Crude oil prices moved sharply higher Tuesday, lifting the most active crude futures contract to the highest settlement in about two months. Hopes that the spread of the Omicron variant will not derail the global economy and adversely impact energy demand supported oil prices. West Texas Intermediate crude oil futures for February spiked $2.99 or 3.8 percent at $81.22 a barrel.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT