Additional Support Anticipated For Indonesia Shares

(RTTNews) - The Indonesia stock market has finished higher in two straight sessions, gathering more than 120 points or 2.4 percent along the way. The Jakarta Composite Index now rests just above the 5,125-point plateau and it's called higher again on Thursday.

The global forecast for the Asian markets is upbeat and rising oil prices and optimism for stimulus. The European and U.S. markets were up and the Asian bourses figure to follow suit.

The JCI finished sharply higher on Wednesday following gains from the financial shares, resource stocks and cement companies.

For the day, the index gained 52.05 points or 1.03 percent to finish at the daily high of 5,127.05 after trading as low as 5,059.09.

Among the actives, Bank Danamon Indonesia climbed 1.12 percent, while Bank Mandiri rallied 2.24 percent, Bank Central Asia eased 0.08 percent, Bank Negara Indonesia jumped 1.54 percent, Indosat accelerated 1.72 percent, Indocement spiked 3.14 percent, Semen Indonesia gained 2.72 percent, Indofood Suskes soared 4.81 percent, United Tractors surged 5.26 percent, Aneka Tambang skyrocketed 6.38 percent, Vale Indonesia added 5.85 percent, Timah was up 4.11 percent and Bumi Resources was unchanged.

The lead from Wall Street is positive as stocks moved mostly higher on Wednesday, extending gains from the previous session as the NASDAQ hit a fresh record closing high.

The Dow jumped 373.05 points or 1.39 percent to finish at 27,201.52, while the NASDAQ added 57.23 points or 0.52 percent to end at 10,998.40 and the S&P 500 rose 21.26 points or 0.64 percent to close at 3,327.77.

The continued strength in the broader markets reflected optimism that lawmakers will eventually reach an agreement on a new coronavirus relief bill after both sides noted progress in talks.

Adding to the positive sentiment, the Institute for Supply Management noted an unexpected acceleration in the pace of growth in service sector activity in July. But traders shrugged off a report from payroll processor ADP showing a slowdown in private sector job growth last month.

Crude oil prices moved higher Wednesday, lifted by data showing a sharp drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for September ended up $0.49 or 1.2 percent at $42.19 a barrel.

Closer to home, Indonesia will see July results for its consumer confidence index later today; in June, the index score was 83.8.

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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