Indonesia Stock Market May Test Resistance At 6,400 Points

(RTTNews) - The Indonesia stock market has finished higher in six straight sessions, gathering more than 120 points or 2 percent along the way. The Jakarta Composite Index now rests just above the 6,380-point plateau and it's called to open higher again on Thursday.

The global forecast for the Asian markets is positive on optimism for a resolution in the trade wat between the United States and China. The European and U.S. markets were up and the Asian bourses are predicted to follow that lead.

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

For the day, the index climbed 45.28 points or 0.71 percent to finish at the daily high of 6,381.95 after moving as low as 6,328.69.

Among the actives, Bank Danamon Indonesia climbed 1.07 percent, while Bank Mandiri jumped 1.42 percent, Bank Central Asia collected 0.74 percent, Bank Negara Indonesia spiked 3.23 percent, Bank Rakyat Indonesia accelerated 1.43 percent, Indosat dropped 0.86 percent, Indocement plunged 4.57 percent, Semen Indonesia plummeted 5.25 percent, Indofood Suskes tumbled 2.52 percent, United Tractors gained 2.40 percent, Bumi Resources skyrocketed 8.51 points, Aneka Tambang fell 0.44 percent, Vale Indonesia soared 2.93 percent and Timah lost 0.83 percent.

The lead from Wall Street is firm as stocks opened higher on Wednesday and continued to rise as the day progressed, sending the major averages to their best closing levels in a month.

The Dow added 227.61 points or 0.85 percent to 27,137.04, while the NASDAQ spiked 85.52 points or 1.06 percent to 8,169.68 and the S&P 500 rose 21.54 points or 0.72 percent to 3,000.93.

The strength on Wall Street came following news that China is granting tariff exemptions for 16 types of American-made products as a sign of goodwill ahead of the next round of trade talks.

Stocks also benefited from optimism about new global stimulus ahead of the European Central Bank's monetary policy decision later today as well as next week's Federal Reserve meeting.

Crude oil prices declined sharply Wednesday on a downward revision in OPEC's oil demand forecast and speculation that the U.S. may ease sanctions on Iran. West Texas Intermediate Crude oil futures for October ended down $1.65 or 2.9 percent at $55.75 a barrel, the lowest settlement since September 3.

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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