The Indonesian stock market experienced a slight uptick on Thursday, following a minor setback that ended a modest two-day winning streak wherein it gained over 35 points or approximately 0.5 percent. The Jakarta Composite Index (JCI) currently stands just below the 7,745-point mark and is anticipated to open with positive momentum on Friday.
The global outlook for Asian markets remains optimistic amid continued positive sentiment regarding interest rates. This sentiment was reflected in the recent performances of the European and U.S. markets, which saw gains. However, a wave of profit-taking might temper gains later in the trading day.
On Thursday, the JCI ended the day marginally higher as gains in resource stocks were counterbalanced by losses in financial shares. The index inched up by 3.61 points or 0.05 percent, closing at 7,744.52, after fluctuating between 7,673.05 and 7,763.08 during the session.
Among actively traded stocks, Bank CIMB Niaga decreased by 0.26 percent, Bank Mandiri dropped 0.35 percent, Bank Central Asia fell 1.38 percent, and Bank Rakyat Indonesia plummeted 5.16 percent. Conversely, Indosat Ooredoo Hutchison surged 2.03 percent, Semen Indonesia increased by 0.78 percent, and Indofood Sukses Makmur rose 0.70 percent. Other notable movements included United Tractors which fell by 0.55 percent, Astra International which edged up 0.48 percent, and Energi Mega Persada which climbed 1.90 percent. Additionally, Indocement saw a decline of 1.43 percent, Aneka Tambang slid 1.04 percent, while Jasa Marga advanced 0.81 percent, Vale Indonesia gained 1.26 percent, Timah rose 1.77 percent, and Bumi Resources rallied 1.65 percent. Bank Danamon Indonesia, Bank Maybank Indonesia, and Bank Negara Indonesia remained unchanged.
The guidance from Wall Street was optimistic as major stock averages opened higher on Thursday, maintaining a positive trajectory throughout the session.
The Dow Jones Industrial Average surged by 260.36 points or 0.62 percent to close at 42,175.11. The NASDAQ Composite Index rose by 108.09 points or 0.60 percent, ending at 18,190.29. The S&P 500 Index added 23.11 points or 0.40 percent, closing at 5,745.37.
The early rally on Wall Street was driven by strength in the tech sector, spearheaded by Micron Technology (MU), which reported better-than-expected quarterly results and issued robust fiscal revenue guidance.
Positive U.S. economic data further supported market sentiment. The Labor Department indicated that initial claims for U.S. jobless benefits unexpectedly decreased last week. Additionally, the Commerce Department reported that new orders for U.S. manufactured durable goods remained nearly unchanged in August.
Conversely, oil prices dropped sharply on Thursday due to concerns about excess supply following reports that the Organization of the Petroleum Exporting Countries (OPEC) will reinstate 2.2 million barrels per day of previously cut production. West Texas Intermediate Crude oil futures for November declined by $2.02 or 2.9 percent, settling at $67.67 per barrel.
