Indonesia’s stock market is expected to rise following an upbeat global forecast. The Jakarta Composite Index is predicted to open higher on Tuesday after alternating between positive and negative finishes in the previous five trading days.
The positive global forecast for Asian markets stems from the expectation of bargain hunting ahead of key inflation data later in the week. While European markets experienced mixed and flat performances, the US bourses ended solidly higher, setting the tone for Asian markets to follow suit.
The latest trading session saw the JCI close modestly higher, boosted by gains in the financial and energy sectors. However, cement companies experienced weakness, and resource stocks provided a mixed picture of performance.
The index improved by 33.52 points or 0.49 percent to finish at 6,886.37 on Monday. Bank CIMB Niaga surged 4.09 percent, Bank Mandiri jumped 1.73 percent, Bank Danamon Indonesia soared 3.69 percent, Bank Central Asia strengthened 1.37 percent, and Bank Rakyat Indonesia rallied 2.24 percent. Indosat Ooredoo Hutchison retreated 1.42 percent, Indocement tanked 2.48 percent, and Semen Indonesia tumbled 1.77 percent.
In the US, the major averages started higher and remained so throughout the session. The Dow surged 407.51 points or 1.16 percent to close at 35,473.13, the NASDAQ climbed 85.16 points or 0.61 percent to end at 13,994.40, and the S&P 500 gained 40.41 points or 0.90 percent, finishing at 4,518.44.
Investors engaged in bargain hunting after last week’s losses, resulting in the strength observed on Wall Street. However, the gains were tempered ahead of reports on consumer and producer price inflation that are expected to influence the Federal Reserve’s decisions on interest rates. While most economists anticipate a pause in rate hikes next month, the data has introduced some uncertainty about the future trajectory of rates.
Oil futures settled lower on Monday due to the dollar’s strength ahead of inflation data. West Texas Intermediate Crude oil futures for September dropped $0.88 or 1.1 percent to $81.94 a barrel.
In conclusion, Indonesia’s stock market is poised to rise, fueled by a positive global outlook and the expectation of bargain hunting. The JCI’s performance has been fluctuating in recent trading days, but it is anticipated to open higher on Tuesday. Investors are also closely monitoring inflation data, which will impact the Federal Reserve’s approach to interest rates.
