- October 15, 2020
- Posted by: Stratford Team
- Category: Markets
(RTTNews) – The Indonesia stock market has finished higher in eight straight sessions, advancing almost 250 points or 5 percent along the way. The Jakarta Composite Index now sits just above the 5,175-point plateau although it’s overdue for consolidation on Thursday.
The global forecast for the Asian markets is negative on rising coronavirus cases and fading optimism for stimulus. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.
The JCI finished modestly higher on Wednesday as huge gains from the resource stocks were mitigated by weakness from the cement companies.
For the day, the index advanced 43.53 points or 0.85 percent to finish at 5,176.10 after trading between 5,125.04 and 5,177.92.
Among the actives, Bank Danamon Indonesia rallied 2.58 percent, while Bank Mandiri jumped 1.76 percent, Bank CIMB Niaga shed 0.65 percent, Bank Negara Indonesia accelerated 3.99 percent, Bank Central Asia collected 0.77 percent, Indosat climbed 1.46 percent, Indocement spiked 2.91 percent, Semen Indonesia fell 0.53 percent, United Tractors eased 0.11 percent, Indofood Suskes retreated 1.72 percent, Astra Agro Lestari lost 0.67 percent, Aneka Tambang skyrocketed 24.84 percent, Vale Indonesia surged 9.40 percent, Timah soared 21.09 percent and Bumi Resources was unchanged.
The lead from Wall Street is soft as stocks moved mostly lower on Wednesday, extending losses from the previous session.
The Dow shed 165.81 points or 0.58 percent to finish at 28,514.00, while the NASDAQ dropped 95.17 points or 0.80 percent to end at 11,768.73 and the S&P 500 fell 23.26 points or 0.66 percent to close at 3,488.67.
The weakness on Wall Street followed comments from Treasury Secretary Steven Mnuchin, which offset recent optimism about a new stimulus bill. He said getting something done on a new stimulus bill before the election “would be difficult.”
A negative reaction to the latest batch of earnings news also weighed, with Bank of America (BAC) shares falling sharply after the financial giant reported Q3 earnings that beat estimates but missed on revenues. Wells Fargo (WFC) and UnitedHealth (UNH) also were key drags.
Crude oil prices moved higher Wednesday despite concerns about the energy demand outlook amid a continued surge in coronavirus cases and fresh lockdown restrictions. West Texas Intermediate Crude oil futures for November ended up $0.84 or 2.1 percent at $41.04 a barrel.
Closer to home, Indonesia will see Q2 results for its business confidence index later today, as well as September numbers for imports, exports and trade balance. The business confidence index had a score of 102.90 in the first quarter.
Imports are expected to plummet 22.4 percent on year after falling 24.19 percent in August. Exports are called lower by an annual 7.2 percent after sinking 8.36 percent in the previous month. The trade surplus is pegged at $1.98 billion, down from $2.33 billion a month earlier.