The Indonesian stock market ended its two-day winning streak on Wednesday, where it had seen gains exceeding 60 points, or 0.8%. The Jakarta Composite Index (JCI) now sits slightly above the 7,500-point mark but is anticipated to recover on Thursday.
Globally, Asian markets are expected to follow a positive trend, fueled by optimism regarding interest rate projections. Both European and U.S. markets closed higher, suggesting that Asian markets will likely mirror this upward movement.
On Wednesday, the JCI experienced a modest decline, influenced by losses in the financial, telecommunications, cement, and resource sectors. Specifically, the index slipped by 55.86 points, or 0.74%, to conclude at 7,501.29, having fluctuated between 7,501.22 and 7,595.58 throughout the session.
In terms of specific performances among active stocks: Bank CIMB Niaga increased by 0.80%, Bank Mandiri decreased by 1.77%, Bank Danamon Indonesia dipped by 0.38%, Bank Negara Indonesia fell by 0.47%, and Bank Central Asia edged up by 0.24%. Conversely, Bank Rakyat Indonesia fell by 1.40%, Bank Maybank Indonesia by 0.88%, Indosat Ooredoo Hutchison by 6.13%, Indocement by 0.36%, Semen Indonesia by 0.25%, and Indofood Sukses Makmur by 1.07%. Furthermore, United Tractors rose by 0.66%, whereas Astra International plummeted by 2.87%, Energi Mega Persada decreased by 4.27%, Astra Agro Lestari by 0.75%, Aneka Tambang by 0.66%, and Jasa Marga by 0.61%. Conversely, Vale Indonesia gained 0.48%, Timah saw an increase of 1.63%, and Bumi Resources dropped by 4.48%.
Wall Street provided a positive lead, with major averages showing a steady rise throughout Wednesday, closing near session highs. The Dow Jones Industrial Average surged by 431.63 points, or 1.03%, reaching a record 42,512.00. Meanwhile, the NASDAQ climbed 108.70 points, or 0.60%, to close at 18,291.62, and the S&P 500 advanced 40.91 points, or 0.71%, also achieving a record high of 5,792.04.
The bullish sentiment on Wall Street was encouraged by the minutes from the Federal Reserve's September meeting, revealing a preference among most members for a larger rate cut, thus fostering hope for future reductions.
In economic developments, the U.S. Commerce Department reported a decrease in the trade deficit to $70.4 billion in August from a revised figure of $78.9 billion in July. Analysts had anticipated a reduction to $70.6 billion, down from the initially reported $78.8 billion.
Crude oil prices dropped on Wednesday, as a significant increase in crude inventories overshadowed potential supply disruptions due to Hurricane Milton and ongoing tensions in the Middle East. West Texas Intermediate (WTI) Crude oil futures for November slipped by $0.33, or 0.45%, settling at $73.24 per barrel.
