Indonesia Stock Market May Extend Winning Streak

RTTNews · 23 Jan 2.1K Views

Ahead of Monday's holiday for the Lunar New Year, the Indonesia stock market had finished higher in two straight sessions, gathering almost 110 points or 1.8 percent along the way. The Jakarta Composite Index now rests just shy of the 6,875-point plateau and it's expected to add to its winnings on Tuesday.

The global forecast for the Asian markets is positive, with technology stocks again expected to lead the markets higher. The European and U.S. bourses were up and the Asian markets are expected to follow that lead.

The JCI finished modestly higher on Friday as gains from the resource stocks and financial shares were offset by weakness from the cement companies.

For the day, the index advanced 55.02 points or 0.81 percent to finish at the daily high of 6,874.93 after moving as low as 6,819.53.

Among the actives, Bank CIMB Niaga climbed 1.29 percent, while Bank Negara Indonesia gained 0.84 percent, Bank Central Asia fell 0.30 percent, Bank Mandiri spiked 2.31 percent, Bank Rakyat Indonesia collected 0.87 percent, Indosat Ooredoo Hutchison retreated 1.21 percent, Indocement tumbled 2.00 percent, Semen Indonesia dropped 1.05 percent, United Tractors accelerated 2.00 percent, Astra International advanced 0.85 percent, Astra Agro Lestari shed 0.62 percent, Aneka Tambang rallied 2.20 percent, Vale Indonesia added 0.67 percent, Timah lost 0.39 percent, Bumi Resources surged 5.33 percent and Bank Danamon Indonesia, Indofood Suskes and Energi Mega Persada were unchanged.

The lead from Wall Street is solid as the major averages opened higher on Monday and remained well in the green throughout the session.

The Dow jumped 254.07 points or 0.76 percent to finish at 33,629.56, while the NASDAQ surged 223.98 points or 2.01 percent to end at 11,364.41 and the S&P 500 spiked 47.20 points or 1.19 percent to close at 4,019.81.

Technology stocks again helped lead the markets higher, contributing to the standout gain by the tech-heavy NASDAQ. Semiconductor stocks turned in a particularly strong performance, driving the Philadelphia Semiconductor Index up by 5.0 percent to a five-month closing high.

Significant strength was also visible among computer hardware stocks, as reflected by the 3.6 percent surge by the NYSE Arca Computer Hardware Index.

Networking and software stocks also saw considerable strength, while banking and transportation stocks turned in some of the best performances outside the tech sector.

Crude oil prices failed to hold early gains and settled roughly flat on Monday amid concerns about the outlook for oil demand due to a potential U.S. recession. West Texas Intermediate Crude oil futures for March settled at $81.62 a barrel, down 2 cents from the previous close.

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