The Indonesia stock market has experienced a downward trend for three consecutive sessions, falling by over 100 points or 1.4 percent. The Jakarta Composite Index (JCI) is currently situated just below the 7,225-point mark and is expected to have another sluggish start on Thursday.
The global outlook for Asian markets indicates consolidation, particularly among technology and semiconductor firms. European and U.S. markets were predominantly lower, suggesting that Asian markets are likely to follow this trend.
On Wednesday, the JCI showed a marginal increase, supported by mixed performances from cement stocks and resource companies, while financials offered some stability. By the end of the trading day, the index slightly declined by 0.08 points or 0.00 percent, settling at 7,224.22 with an intraday range between 7,207.58 and 7,265.09.
Among the active stocks, Bank Mandiri advanced by 1.57 percent, Bank Negara Indonesia rose by 0.40 percent, Bank Rakyat Indonesia gained 0.63 percent, and Semen Indonesia increased by 0.25 percent. Indofood Sukses Makmur surged 1.68 percent, Astra International climbed 1.83 percent, and Vale Indonesia improved by 1.58 percent. Conversely, Bank Central Asia fell by 1.51 percent, and Jasa Marga dropped 2.35 percent. United Tractors, Indocement, and Bank Danamon Indonesia remained unchanged.
Wall Street painted a contrasting picture, with the Dow Jones Industrial Average hitting a fresh record high by soaring 243.60 points or 0.59 percent to close at 41,198.08. Meanwhile, the NASDAQ plunged 512.42 points or 2.77 percent to finish at 17,996.92, and the S&P 500 tumbled 78.93 points or 1.39 percent, ending at 5,588.27.
The decline in Wall Street was driven primarily by semiconductor stocks, which plummeted amid reports of the Biden administration considering stricter trade rules against companies involved in the chip sector's activities with China.
Further negative sentiment arose when former President Donald Trump suggested that Taiwan should compensate the U.S. for defense measures, claiming Taiwan benefits significantly from the U.S. chip industry.
In economic developments, the U.S. Commerce Department reported a substantial rebound in new residential construction and building permits in June. Additionally, a separate Federal Reserve report indicated that U.S. industrial production increased more than anticipated in the previous month.
Oil prices saw a sharp increase on Wednesday following data that revealed a substantial drop in U.S. crude inventories during the last week, coupled with support from a weaker dollar. West Texas Intermediate Crude oil futures for August rose by $2.09 or 2.6 percent to settle at $82.85 per barrel.
