The Indonesian stock market concluded its impressive eight-day rally on Wednesday, during which it gained over 300 points, equating to a 4.1% increase. The Jakarta Composite Index now hovers just below the 7,790 mark, and indications point to potential accelerated losses by Thursday.
Globally, the outlook for Asian markets leans negative, influenced by rising treasury yields and growing concerns over interest rates. This trend was mirrored by declines in the European and U.S. markets, suggesting a similar trajectory might be observed across Asian exchanges.
On Wednesday, the Jakarta Composite Index experienced a marginal decline, primarily due to losses in cement and resource stocks. Financial stocks displayed mixed performances, whereas energy stocks recorded gains. Specifically, the index slipped by 1.42 points, or 0.1%, to settle at 7,787.56.
In individual stock performance: Bank CIMB Niaga decreased by 0.26%, Bank Danamon Indonesia rose by 1.15%, Bank Negara Indonesia increased by 0.44%, Bank Central Asia saw a 1.43% rise, while Bank Rakyat Indonesia declined by 0.82%. Bank Maybank Indonesia dropped by 0.86%, Indosat Ooredoo Hutchison surged by 2.07%, Indocement decreased by 0.32%, and Semen Indonesia contracted by 0.70%. Indofood Sukses Makmur grew by 1.01%. United Tractors edged down by 0.18%, Astra International climbed by 0.47%, Energi Mega Persada experienced an impressive jump of 18.75%, Astra Agro Lestari fell by 1.09%, Aneka Tambang decreased by 1.20%, Jasa Marga lowered by 0.21%, Vale Indonesia decreased by 1.41%, Timah saw a sharp fall of 3.60%, Bumi Resources climbed by 4.26%, while Bank Mandiri remained unchanged.
Wall Street offered a discouraging lead, with key indices opening lower and maintaining negative momentum throughout Wednesday, despite recovering slightly from the day's troughs. The Dow declined by 409.94 points, or 0.96%, to close at 42,514.95. Meanwhile, the NASDAQ dropped by 296.47 points, or 1.60%, ending at 18,276.47, and the S&P 500 contracted by 53.78 points, or 0.92%, to settle at 5,797.42.
This downturn in U.S. markets corresponded to a continuous uptick in treasury yields, which have surged significantly in recent trading sessions. The benchmark ten-year note yield reached its highest point in nearly three months, reflecting concerns that the Federal Reserve might proceed more cautiously than anticipated with interest rate reductions.
Although a quarter-point interest rate cut by the Federal Reserve next month remains widely expected, doubt is mounting regarding the likelihood of an additional rate cut in December.
In the oil sector, prices declined on Wednesday due to data indicating a larger-than-expected increase in U.S. crude oil inventories, compounded by a stronger dollar. Specifically, West Texas Intermediate crude oil futures for December fell by $0.97, or 1.35%, concluding at $70.77 per barrel.
