Indonesia Bourse Due For Consolidation On Wednesday

(RTTNews) – Ahead of Tuesday’s holiday for Pancasila Day, the Indonesia stock market had climbed higher in four straight sessions, advancing almost 190 points or 4.1 percent along the way. The Jakarta Composite Index now sits just beneath the 5,950-point plateau although it may open under pressure on Wednesday.

The global forecast for the Asian markets roughly flat, with optimism for economic recovery offset by inflation concerns. The European markets were up and the U.S. bourses were mixed and flat and the Asian markets figure to follow the latter lead.

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

For the day, the index jumped 98.85 points or 1.69 percent to finish at the daily high of 5,947.46 after moving as low as 5,860.54.

Among the actives, Bank Danamon Indonesia shed 0.43 percent, while Bank CIMB Niaga collected 0.52 percent, Bank Negara Indonesia rallied 3.85 percent, Bank Central Asia increased 0.55 percent, Bank Mandiri soared 3.45 percent, Bank Rakyat Indonesia surged 4.67 percent, Indosat climbed 1.60 percent, Indocement advanced 1.47 percent, Semen Indonesia gained 0.52 percent, Indofood Suskes jumped 2.01 percent, United Tractors spiked 3.32 percent, Astra International accelerated 1.94 percent, Energi Mega Persada tumbled 1.92 percent, Astra Agro Lestari added 0.57 percent, Aneka Tambang lost 0.41 percent, Vale Indonesia improved 1.07 percent, Timah jumped 1.59 percent and Bumi Resources was unchanged.

The lead from Wall Street offers little guidance as stocks opened higher on Tuesday but quickly faded, bouncing back and forth across the unchanged line before finishing mixed and little changed.

The Dow added 45.86 points or 0.13 percent to finish at 34,575.31, while the NASDAQ fell 12.26 points or 0.09 percent to end at 13,736.48 and the S&) 500 eased 2.07 points or 0.05 percent to close at 4,202.04.

The initial strength on Wall Street came as upbeat manufacturing data from overseas added to optimism about the outlook for the global economy. Also, the Institute for Supply Management said manufacturing activity in the U.S. expanded at a slightly faster pace in May.

Buying interest waned shortly after the start of trading, however, as traders continued to express uncertainty about inflation and the outlook for monetary policy.

Traders may also have been reluctant to make significant moves ahead of the release of the Labor Department’s closely watched monthly jobs report on Friday.

Crude oil prices rose sharply on Tuesday amid optimism for a strong global economic recovery and increased demand following a drop in fresh coronavirus cases and an acceleration in the vaccination drive. West Texas Intermediate Crude oil futures for July jumped $1.40 or 2.1 percent at $67.72 a barrel, the highest since October 2018.

Closer to home, Indonesia will release May figures for consumer prices later today, with overall inflation expected to rise 0.32 percent on month and 1.67 percent on year after gaining 0.13 percent on month and 1.42 percent on year in April. Core CPI is tipped to climbed 1.28 percent on year, up from 1.18 percent in the previous month.

Indonesia also will see May results for the manufacturing PMI from Markit Economics; in April, the index score was 54.6.