The Indonesian stock market has experienced an upward movement for two consecutive sessions, adding nearly 40 points or 0.6 percent. As of now, the Jakarta Composite Index (JCI) sits just below the 7,290 mark, and it is anticipated to continue its upward trend on Thursday.
The global outlook for Asian markets is optimistic, driven by gains in technology stocks ahead of important inflation data. Both European and U.S. markets experienced increases, and similar performance is expected for Asian markets.
On Wednesday, the JCI saw a modest increase, buoyed by advancements in food stocks, despite weaknesses in cement companies and mixed results in the financial sector.
The index rose by 17.24 points or 0.24 percent, closing at 7,287.04. In terms of individual performances, Bank Danamon Indonesia gained 0.39 percent, while Bank Negara Indonesia fell by 0.82 percent. Bank Central Asia increased by 0.25 percent, Bank Rakyat Indonesia decreased by 0.41 percent, Indocement dropped significantly by 3.62 percent, Semen Indonesia decreased by 3.11 percent, Indofood Sukses Makmur advanced by 0.84 percent, United Tractors fell by 0.53 percent, Astra International declined by 0.44 percent, Vale Indonesia dipped by 0.50 percent, and Bank Mandiri remained unchanged.
The positive sentiment from Wall Street is broadly supportive. The major indices opened flat on Wednesday but climbed steadily, ending near their session highs with considerable gains.
The Dow Jones Industrial Average surged by 429.39 points or 1.09 percent to close at 39,721.36. The NASDAQ Composite rallied by 218.16 points or 1.18 percent, reaching a record high of 18,647.45, while the S&P 500 increased by 56.93 points or 1.02 percent, closing at a record 5,633.91.
This rally is attributed to the strength in technology stocks, with the tech-heavy NASDAQ showing significant gains. Investor optimism regarding interest rates also played a role, ahead of the release of key consumer price inflation data.
Federal Reserve Chair Jerome Powell, in his congressional testimony, indicated that continued positive economic data would boost the central bank’s confidence in achieving a sustainable 2 percent inflation target, potentially leading to an interest rate cut.
Oil futures also ended higher on Wednesday, following data that showed a larger-than-expected decrease in U.S. crude inventories. West Texas Intermediate (WTI) Crude oil futures for August settled up by $0.69, finishing at $82.10 per barrel.
