Plus   Neg

Higher Open Called For Indonesia Stock Market

The Indonesia stock market on Tuesday ended the four-day losing streak in which it had fallen more than 110 points or 1.9 percent. The Jakarta Composite Index now rests just above the 6,255-point plateau and it may see further upside again on Wednesday.

The global forecast for the Asian markets is firm on improved outlooks for interest rates and trade, plus a spike in crude oil prices. The European and U.S. market were up and the Asian bourses figure to follow suit.

The JCI finished sharply higher on Tuesday following gains from the financials and a mixed picture from the resource stocks.

For the day, the index advanced 66.81 points or 1.08 percent to finish at the daily high of 6,257.33 after moving as low as 6,195.13.

Among the actives, Bank Danamon Indonesia plunged 3.29 percent, while Bank Mandiri collected 0.64 percent, Bank Central Asia spiked 1.81 percent, Bank Negara Indonesia soared 3.25 percent, Bank Rakyat Indonesia jumped 1.43 percent, Indosat shed 0.75 percent, Indocement plummeted 3.39 percent, Semen Indonesia dropped 1.29 percent, Indofood Suskes accelerated 2.17 percent, United Tractors added 0.65 percent, Aneka Tambang rose 1.31 percent, Vale Indonesia lost 0.72 percent, Timah fell 0.45 percent and Bumi Resources was unchanged.

The lead from Wall Street is broadly positive as stocks moved sharply higher on Tuesday, sending the major averages to their best closing levels in more than a month.

The Dow added 353.01 points or 1.35 percent to end at 26,465.54, while the NASDAQ gained 108.86 points or 1.39 percent to 7,953.88 and the S&P 500 rose 28.08 points or 0.97 percent to 2,917.75.

Stocks extended an initial move to the upside after President Donald Trump said on Twitter that he had a "very good" telephone conversation with Chinese President Xi Jinping and they will have an extended meeting at the G20 summit next week.

That added to optimism that the Fed will strike a dovish tone in its latest monetary policy decision later today. The Fed is widely expected to leave interest rates unchanged but could signal plans to cut rates as soon as its next meeting in July.

Crude oil futures ended at a one-week high Tuesday amid mild optimism about a U.S.-China trade agreement, while traders also weighed the likely impact of an extended output reduction by OPEC. West Texas Intermediate Crude oil futures for July ended up $1.97 or 3.8 percent at $53.90 per barrel.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT