Indonesia Stock Market May Extend Winning Streak
(RTTNews) - The Indonesia stock market has finished higher in back-to-back trading days, gathering almost 50 points or 1 percent along the way. The Jakarta Composite Index now rests just beneath the 5,080-point plateau and it may add to its winnings on Wednesday.
The global forecast for the Asian markets is mixed to higher, with rising coronavirus concerns offset by optimism for further stimulus. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The JCI finished modestly higher on Tuesday as gains from the food and cement stocks were limited by weakness from the resource companies and a mixed picture from the financial sector.
For the day, the index advanced 14.68 points or 0.29 percent to finish at the daily high of 5,079.12 after trading as low as 5,053.72.
Among the actives, Bank Mandiri advanced 0.95 percent, while Bank Central Asia collected 0.40 percent, Bank Negara Indonesia shed 0.63 percent, Indosat sank 0.78 percent, Indocement added 0.43 percent, Semen Indonesia soared 3.21 percent, Indofood Suskes rose 0.38 percent, Aneka Tambang plunged 2.22 percent, Vale Indonesia tumbled 2.11 percent, Timah plummeted 2.27 percent and Bank Danamon Indonesia and Bumi Resources were unchanged.
The lead from Wall Street is broadly positive as stocks rebounded on Tuesday from the sharp pullback in the previous session.
The Dow surged 556.79 points or 2.13 percent to finish at 26,642.59, while the NASDAQ jumped 97.73 points or 0.94 percent to end at 10,488.58 and the S&P 500 rose 42.30 points or 1.34 percent to close at 3,197.52.
The spike by the Dow was partly attributed to traders transitioning out of big-name tech stocks and into more cyclical stocks like Caterpillar (CAT), which led the blue chip index higher with a 4.8 percent jump.
Strong gains by energy giants Chevron (CVX) and Exxon Mobil (XOM) also contributed to the advance by the Dow, reflecting strength in the broader energy sector.
Investors shrugged off a surge in new coronavirus cases, even though several U.S. states are likely to resort to another lockdown. Already, California Governor Gavin Newscom has ordered the reintroduction of coronavirus-related restrictions, aiming to contain the spread of the pandemic.
Crude oil futures were higher on Tuesday, with traders weighing global crude supply and demand positions ahead of today's OPEC meeting. West Texas Intermediate Crude oil futures for August ended up $0.19 or 0.5 percent at $40.29 a barrel.
Closer to home, Indonesia will release June figures for imports, exports and trade balance later today. Imports are expected to slide 18.7 percent on year after plummeting 42.2 percent in May. Exports are called lower by an annual 12.26 percent after dropping 28.95 percent in the previous month. The trade balance is predicted to show a surplus of $1.11 billion, down from $2.09 billion a month earlier.
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