Recovery could run out of steam in the Indonesian stock market

(RTTNews) – Indonesia’s stock market has risen for two consecutive sessions, gaining more than 85 points, or 1.2 percent. The Jakarta Composite Index is now just above the 6,965-point plateau, although it could lose ground on Friday.

Global forecasts for Asian markets are flat or slightly higher ahead of key inflation data later today. European markets were mixed and US stock markets were slightly higher with Asian markets expected to split the difference.

The JCI ended slightly higher on Thursday following gains in financial and food stocks, while cement and resources companies were mixed.

For the day, the index rose 62.31 points or 0.90 percent to end at 6,967.95 after trading between 6,915.83 and 6,968.14.

Among the actives, Bank CIMB Niaga gained 0.59 percent, while Bank Mandiri climbed 2.56 percent, Bank Danamon Indonesia climbed 1.20 percent, Bank Negara Indonesia surged 3.62 percent, Bank Central Asia accelerated 2.63 percent, Bank Rakyat Indonesia climbed 2.06 percent, Indosat Ooredoo Hutchison sank. 0.72 percent, Indocement jumped 1.74 percent, Semen Indonesia fell 0.83 percent, Indofood Sukses Makmur rose 2.12 percent, Astra International gained 0.23 percent, Energi Mega Persada lost 0.52 percent, Aneka Tambang improved 1.23 percent, Vale Indonesia lost 0.74 percent, Timah strengthened 1.15 percent, Bumi Resources declined 1.28 percent and Astra Agro Lestari and United Tractors were unchanged.

Wall Street’s lead is cautiously optimistic as the major averages bounced around the unchanged line all day Thursday before finally settling with slight gains.

The Dow gained 36.26 points or 0.09 percent to end at 39,164.06, while the NASDAQ gained 53.53 points or 0.30 percent to close at 17,858.68 and the S&P 500 gained rose 4.97 points or 0.09 percent to finish at 5,482.87.

The choppy trading on Wall Street comes as traders appear reluctant to make significant moves ahead of the release of key inflation data later in the day.

The Commerce Department is due to release its report on personal income and spending in May, which includes measures of inflation that the Federal Reserve would prefer; the report could have a significant impact on the outlook for interest rates.

In economic news, the Labor Department reported that initial jobless claims in the United States fell more than expected last week. The Commerce Department also reported that new orders for durable manufactured goods in the United States unexpectedly increased last month.

Oil futures were higher Thursday on hopes for the demand outlook and concerns about possible supply disruptions due to tensions in the Middle East. West Texas Intermediate crude futures for August added $0.84 to $81.74 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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