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Indonesia Stock Market Eyes Resistance At 5,100 Points

(RTTNews) - The Indonesia stock market has finished higher in two of three trading days since the end of the two-day slide in which it had eased just 5 points or 0.1 percent. The Jakarta Composite Index now rests just above the 5,075-point plateau and it's called higher again on Wednesday.

The global forecast for the Asian markets is upbeat on rising oil prices and hopes for stimulus in the United States. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

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

For the day, the index jumped 68.78 points or 1.37 percent to finish at the daily high of 5,075.00 after trading as low as 5,006.50.

Among the actives, Bank Danamon Indonesia spiked 2.67 percent, while Bank Mandiri jumped 1.36 percent, Bank Central Asia collected 1.31 percent, Bank Negara Indonesia rallied 2.70 percent, Indosat skyrocketed 6.91 percent, Indocement added 0.42 percent, Semen Indonesia advanced 0.82 percent, Indofood Suskes soared 4.25 percent, Aneka Tambang gained 0.71 percent, Vale Indonesia accelerated 2.09 percent, Timah fell 0.68 percent and Bumi Resources and United Tractors were unchanged.

The lead from Wall Street is positive as stocks showed a lack of direction Tuesday but managed to end the day mostly higher following a late move to the upside.

The Dow added 164.07 points or 0.62 percent to finish at 26,828.47, while the NASDAQ gained 38.37 points or 0.35 percent to end at 10,941.17 and the S&P 500 rose 11.90 points or 0.36 percent to close at 3,306.51.

The late-day strength on Wall Street reflected a positive reaction to comments from Senate Majority Leader Mitch McConnell, R-Ken.

McConnell told reports he is prepared to support a coronavirus relief bill agreement between Democrats and the White House even is he has some problems with certain parts of it.

The amount of the federal unemployment benefit remains a key sticking point, as Republicans want to slash the benefit to $200 per week and Democrats want to keep it at $600 per week.

In economic news, the Commerce Department noted another substantial increase in new orders for manufactured goods in June.

Crude oil futures settled notably higher Tuesday, with traders picking up positions ahead of inventory data on hopes of a drop in stockpiles. West Texas Intermediate Crude oil futures for September settled at $41.70 a barrel, gaining $0.69 or 1.7 percent for the session.

Closer to home, Indonesia will release Q2 numbers for gross domestic product later today, with forecasts suggesting a decline of 3.49 percent on quarter and 4.61 percent on year. That follows the 2.41 percent quarterly decline and the 2.97 percent yearly gain in the three months prior.

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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