Additional Support Expected For Indonesia Shares

(RTTNews) - The Indonesia stock market has moved higher in three straight sessions, collecting more than 70 points or 1.6 percent along the way. The Jakarta Composite Index now sits just above the 4,565-point plateau and it's got a firm lead for Thursday's trade.

The global forecast for the Asian markets is broadly positive on optimism for a treatment for the Covid-19 virus. The European and U.S. markets were sharply higher and the Asian markets are tipped to open in the green.

The JCI finished modestly higher on Wednesday as gains from the cement and resource stocks were capped by a mixed performance from the financials.

For the day, the index advanced 37.77 points or 0.83 percent to finish at 4,567.32 after trading between 4,523.96 and 4,568.67.

Among the actives, Bank Mandiri plunged 3.61 percent, while Bank Central Asia collected 0.41 percent, Bank Negara Indonesia skidded 1.57 percent, Indosat skyrocketed 10.29 percent, Indocement spiked 4.74 percent, Semen Indonesia soared 5.76 percent, Indofood Suskes accelerated 3.09 percent, Aneka Tambang climbed 1.22 percent, Vale Indonesia jumped 1.28 percent, Timah rose 0.43 percent and Bank Danamon Indonesia and Bumi Resources were unchanged.

The lead from Wall Street is upbeat as stocks opened sharply higher on Wednesday and continued to see significant upside throughout the session after ending the previous day in the red.

The Dow surged 532.31 points or 2.21 percent to 24,633.86, while the NASDAQ soared 306.98 points or 3.57 percent to 8,914.98 and the S&P 500 jumped 76.12 points or 2.66 percent to end at 2,939.51.

The rally on Wall Street comes as upbeat news about Gilead Sciences' potential coronavirus treatment remdesivir overshadowed a report from the Commerce Department showing a steep drop in U.S. gross domestic product in the first quarter.

The Commerce Department said U.S. real gross domestic product decreased at an annual rate of 4.8 percent in the first quarter following the 2.1 percent jump in the fourth quarter of 2019.

Markets maintained their positive bias after the U.S. Federal Reserve held its interest rate target between 0 and 0.25 percent. The Fed said it would continue with its aggressive policy stance until it feels that the economy is back on its feet.

The positive sentiment extended to the oil markets as crude oil prices rose sharply on Wednesday, rebounding from losses in the previous two days. West Texas Intermediate Crude oil futures for June ended up $2.72 or 22 percent at $15.06 a barrel, after rising to a high of $16.78 at one point.

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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