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Indonesia Stock Market May Extend Monday's Gains

The Indonesia stock market has alternated between positive and negative finishes through the last five trading days since the end of the three-day slide in which it had retreated almost 200 points or 2.9 percent. The Jakarta Composite Index now rests just above the 6,975-point plateau and it's expected to add to its winnings on Tuesday.

The global forecast for the Asian markets is cautiously optimistic, with support expected from the financials, technology stocks and oil companies. The European markets were solidly higher and the U.S. bourses were off on holiday and the Asian markets figure to open in the green.

The JCI finished modestly higher on Monday following mixed performances from the financial shares, resource stocks and cement companies.

For the day, the index improved 39.41 points or 0.57 percent to finish at the daily high of 6,976.38 after trading as low as 6,859.60.

Among the actives, Bank Danamon Indonesia strengthened 1.69 percent, while Bank CIMB Niaga dropped 0.99 percent, Bank Negara Indonesia lost 0.61 percent, Bank Central Asia jumped 1.67 percent, Bank Mandiri rallied 2.17 percent, Bank Rakyat Indonesia collected 0.69 percent, Indosat tanked 2.34 percent, Indocement shed 0.54 percent, Semen Indonesia soared 4.03 percent, Indofood Suskes climbed 1.10 percent, United Tractors added 0.69 percent, Astra International fell 0.36 percent, Energi Mega Persada advanced 0.71 percent, Astra Agro Lestari plunged 3.73 percent, Aneka Tambang tumbled 1.90 percent, Vale Indonesia plummeted 3.62 percent, Timah surrendered 2.03 percent, Bumi Resources skyrocketed 10.77 percent and Bakrie Sumatera Plantations was unchanged.

Wall Street and many of the commodity markets were off on Monday for the Juneteenth holiday, but the European markets finished with solid gains.

Germany's DAX jumped 139.34 points or 1.06 percent to finish at 13,265..60, London's FTSE spiked 105.56 points or 1.50 percent to close at 7,121.81 and the CAC 40 in France gained 37.44 points or 0.64 percent to end at 5,920.09.

Bargain hunting was a big part of that following the weakness from last week that were fueled by worries about a recession and bets of bigger interest-rate hikes from major central banks.

The rally was also fueled by European Central bank President Christine Lagarde, who reaffirmed on Monday that the ECB will hike interest rates by 25 basis points twice this summer to fight inflation. Investors had worried that sharper rate hikes might be on the docket, sparking recession concerns.

Investors also await a congressional appearance by U.S. Federal Reserve Chair Jay Powell this week that could highlight the U.S. central bank's resolve to guide inflation back to the Fed's 2 percent target.

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