Rebound Predicted For Indonesia Stock Market
(RTTNews) - The Indonesia stock market has tracked lower in back-to-back sessions, sinking more than 125 points or 2.5 percent along the way. The Jakarta Composite Index now sits just beneath the 4,935-point plateau although it's due for a positive bounce on Wednesday.
The global forecast for the Asian markets is positive, with bargain hunting expected after days of heavy selling while optimism for additional stimulus added to the positive sentiment. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The JCI finished sharply lower on Tuesday following losses from the financial shares, resource stocks and cement companies.
For the day, the index tumbled 65.27 points or 1.31 percent to finish at 4,934.09 after trading between 4,919.11 and 4,978.44.
Among the actives, Bank Danamon Indonesia tanked 3.04 percent, while Bank Mandiri plunged 3.20 percent, Bank CIMB Niaga tumbled 2.65 percent, Bank Negara Indonesia shed 1.09 percent, Indosat dropped 1.48 percent, Indocement fell 0.69 percent, Semen Indonesia retreated 1.90 percent, Astra Agro Lestari skidded 2.58 percent, Aneka Tambang plummeted 3.92 percent, Vale Indonesia surrendered 3.37 percent, Timah lost 2.68 percent and Indofood Suskes and Bumi Resources were unchanged.
The lead from Wall Street is firm as stocks shook off a sluggish start on Tuesday to finish solidly in the green, halting a three-day slide.
The Dow climbed 140.48 points or 0.52 percent to finish at 27,288.18, while the NASDAQ spiked 184.84 points or 1.71 percent to end at 10,963.64 and the S&P 500 jumped 34.51 points or 1.05 percent to close at 3,315.57.
The strength on Wall Street came after Federal Reserve Chair Jerome Powell said the central bank remains "committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible."
Although worries about rising coronavirus cases persisted and reports of fresh lockdown restrictions in some countries raised concerns about growth, bargain hunting and short-covering after Monday's sharp setback pushed stock prices higher.
In economic news, the National Association of Realtors reported that existing home sales in the U.S. climbed to their highest level in nearly fourteen years in August.
Crude oil futures saw a technical rebound on Tuesday, although it was limited by worries about the outlook for energy demand amidst new coronavirus cases in Europe. West Texas Intermediate Crude oil futures for November ended higher by $0.26 or 0.7 percent at $39.80 a barrel.
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