Indonesia Stock Market Draws Flat Lead For Wednesday

(RTTNews) – The Indonesia stock market has finished lower in two of three trading days since the end of the six-day winning streak in which it had surged more than 330 points or 6.5 percent. The Jakarta Composite Index now sits just beneath the 6,000-point plateau and it’s expected to remain in that neighborhood again on Wednesday.

The global forecast for the Asian markets offers little guidance on a lack of catalysts. The European and U.S. markets were mixed and little changed and the Asian bourses are expected to open in similar fashion.

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

For the day, the index skidded 70.57 points or 1.16 percent to finish at 5.999.37 after trading between 5,992.12 and 6,075.89.

Among the actives, Bank Danamon Indonesia tanked 2.13 percent, while Bank CIMB Niaga surrendered 3.09 percent, Bank Central Asia shed 1.53 percent, Bank Mandiri declined 2.04 percent, Bank Rakyat Indonesia was down 1.18 percent, Indosat plunged 4.85 percent, Indocement tumbled 3.25 percent, Semen Indonesia sank 2.16 percent, Indofood Suskes dropped 3.04 percent, United Tractors jumped 1.96 percent, Astra International added 0.48 percent, Astra Agro Lestari retreated 2.74 percent, Aneka Tambang lost 1.26 percent, Vale Indonesia eased 0.22 percent, Timah slid 0.96 percent, Bumi Resources climbed 1.67 percent and Bank Negara Indonesia was unchanged.

The lead from Wall Street is unclear as stocks spent Tuesday’s session bouncing back and forth across the unchanged line, finally settling mixed and little changed.

The Dow fell 30.42 points or 0.09 percent to finish at 34,599.82, while the NASDAQ gained 43.19 points or 0.31 percent to end at 13,924.91 and the S&P 500 rose 0.74 points or 0.02 percent to close at 4,227.26.

Despite optimism about economic growth amid the vaccine rollout, investors were reluctant to build up positions ahead of upcoming inflation data and concerns the Federal Reserve may start discussions on tapering its asset buying program.

Inflation data for May is due out on Thursday and may provide some cues on policy from the Federal Reserve – which is scheduled to meet next week.

Crude oil futures spiked on Tuesday on hopes that demand will continue to rise following reports that the Pfizer and AstraZeneca Covid vaccines are effective against the Covid Delta variant. West Texas Intermediate Crude oil futures for July ended up by $0.82 or 1.2 percent at $70.05 a barrel, the highest settlement since October 2018.