The Indonesian stock market has experienced gains for two consecutive sessions, accumulating over 80 points or 1.1%. Consequently, the Jakarta Composite Index (JCI) is positioned just above the 7,325 mark, although it may face resistance on Friday.
Global market forecasts indicate a bearish trend for Asian markets due to increasing concerns over economic slowdown. Both European and U.S. markets saw significant declines, suggesting that Asian markets could follow a similar pattern.
On Thursday, the JCI closed moderately higher, buoyed by financial shares and resource stocks. The index climbed 70.22 points or 0.97% to reach its daily high of 7,325.98, after dipping to a low of 7,258.87 earlier in the session.
Notable movements included Bank Mandiri surging 5.47%, Bank Danamon Indonesia declining 0.77%, and Bank Negara Indonesia rising 2.11%. Bank Central Asia increased by 0.97%, while Bank Rakyat Indonesia and Bank Maybank Indonesia gained 1.71% and 0.93%, respectively. Indosat Ooredoo Hutchison saw a sharp drop of 3.60%, and Semen Indonesia receded by 1.53%. Indofood Sukses Makmur edged up 0.41%, United Tractors fell 0.97%, and Astra International added 0.42%. Energi Mega Persada soared 4.67%, Astra Agro Lestari improved 0.83%, and Aneka Tambang jumped 2.28%. Jasa Marga dipped 2.70%, Vale Indonesia surged 2.41%, Timah rallied 3.17%, while Bumi Resources, Bank CIMB Niaga, and Indocement remained unchanged.
Wall Street's lead was broadly negative, as major averages started slightly higher on Thursday but rapidly declined, closing significantly lower. The Dow Jones Industrial Average dropped 494.82 points or 1.21% to 40,347.97, the NASDAQ plummeted 405.26 points or 2.30% to 17,194.14, and the S&P 500 fell 75.62 points or 1.37% to 5,446.68.
The decline in U.S. stocks was attributed to disappointing economic data, which overshadowed optimism regarding a potential near-term interest rate cut by the Federal Reserve. The Institute for Supply Management reported an unexpected acceleration in the contraction of U.S. manufacturing activity in July. Additionally, the Labor Department revealed that initial claims for U.S. unemployment benefits reached their highest level in nearly a year last week.
Oil futures also settled lower on Thursday due to concerns over lackluster economic data and its impact on oil demand. West Texas Intermediate Crude oil futures for September dropped by $1.60 or approximately 2.05%, closing at $76.31 per barrel.
