Separated by the long break for Eid-ul-Fitr, the Indonesia stock market has moved lower in two straight sessions, plummeting more than 220 points or 3.7 percent along the way. The Jakarta Composite Index now rests just beneath the 5,885-point plateau although it may find traction on Thursday.
The global forecast for the oversold Asian markets is cautiously optimistic, with bargain hunting expected amid a bump in crude oil prices. The European and U.S. markets were mixed to higher, and the Asian bourses figure to follow suit.
The JCI finished sharply lower on Wednesday following heavy damage among the financial shares and the resource stocks.
For the day, the index plummeted 109.59 points or 1.83 percent to finish at 5,884.04 after trading between 5,834.13 and 5,947.78. There were 287 decliners and 120 gainers, with 93 stocks finishing unchanged.
Among the actives, Bank Negara Indonesia plummeted 6.52 percent, while Tiga Pilar Sejahtera Food plunged 4.59 percent, XL Axiata tumbled 4.18 percent, Bank Pan Indonesia dropped 3.98 percent, Lotte Chemical skidded 3.03 percent, Jasa Marga retreated 2.60 percent, Bank Central Asia lost 3.37 percent, Vale Indonesia tumbled 4.74 percent, Bank Mandiri slid 3.60 percent, Aneka Tambang was down 2.76 percent, Bank Danamon Indonesia plummeted 4.20 percent, Bank MNC Internasional declined 1.85 percent, Bumi Resources fell 1.53 percent, Bukit Darmo Property shed 1.32 percent and SLJ Global and Indosat were unchanged.
The lead from Wall Street calls for mild support. After an initial move to the upside, stocks turned lackluster on Wednesday - eventually ending the session mixed.
The Dow fell 42.41 points or 0.17 percent to 24,657.80, while the NASDAQ added 55.93 points or 0.72 percent to 7,781.51 and the S&P 500 gained 4.73 points or 0.17 percent to 2,767.32.
The advance by the NASDAQ reflected strength among media stocks after Disney (DIS) raised its offer for most of Twenty-First Century Fox's (FOXA) media assets - exceeding the offer made by rival Comcast (CMCSA).
Traders largely shrugged off concerns about a trade war been the U.S. and China that contributed to weakness on Tuesday.
In economic news, the National Association of Realtors reported an unexpected decrease in existing home sales in May.
Crude oil futures rebounded Wednesday after the latest U.S. inventories report showed a bigger drop than expected. July WTI oil gained $1.15 or 1.8 percent to end at $66.22/bbl on expiration day. August WTI oil was up 81 cents or nearly 1.3 percent to settle at $65.71/bbl.
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