(RTTNews) – The Indonesia stock market bounced higher again on Wednesday, one session after ending the two-day winning streak in which it had gathered more than 120 points or 2 percent. The Jakarta Composite Index now rests just beneath the 6,835-point plateau and it may extend its gains on Thursday.
The global forecast for the Asian markets is upbeat on earnings optimism and support from oil and technology stocks. The European and U.S. markets were firmly higher and the Asian markets are tipped to open in similar fashion.
The JCI finished modestly higher on Wednesday following gains from the financials shares, cement companies and energy producers.
For the day, the index added 45.08 points or 0.66 percent to finish at 6,834.61 after trading between 6,796.63 and 6,840.39.
Among the actives, Bank Danamon Indonesia retreated 1.62 percent, while Bank Negara Indonesia climbed 1.00 percent, Bank Central Asia strengthened 2.91 percent, Bank Mandiri collected 0.66 percent, Bank Rakyat Indonesia increased 0.23 percent, Indosat dropped 0.90 percent, Indocement rose 0.23 percent, Semen Indonesia spiked 2.45 percent, Indofood Suskes lost 0.39 percent, United Tractors rallied 2.25 percent, Energi Mega Persada skyrocketed 22.31 percent, Bakrie Sumatera Plantations surged 5.41 percent, Astra Agro Lestari sank 0.75 percent, Aneka Tambang shed 0.56 percent, Vale Indonesia perked 0.22 percent, Timah declined 0.82 percent, Bumi Resources soared 2.56 percent and Bank CIMB Niaga and Astra International were unchanged.
The lead from Wall Street is broadly positive as the major averages opened firmly higher and remained that way throughout the session.
The Dow spiked 305.28 points or 0.86 percent to finish at 35,768.06, while the NASDAQ surged 295.92 points or 2.08 percent to end at 14,490.37 and the S&P 500 gained 65.64 points or 1.45 percent to close at 4,587.18.
The rally on Wall Street came as stocks continued to recover from the sharp pullback in January, with the Dow reaching its best levels in almost a month. The major averages remain well off the record highs but have climbed well off the multi-month lows set in late January.
Upbeat earnings also contributed to the continued strength on Wall Street, led by such companies as Chipotle Mexican Grill (CMG), cannabis producer Canopy Growth (CGC) and solar energy company Enphase Energy (ENPH), while CVS Health (CVS) disappointed.
Crude oil prices moved higher Wednesday after data showed a drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for March ended higher by $0.30 or 0.3 percent at $89.66 a barrel.
Closer to home, the central bank in Indonesia will wrap up its monetary policy meeting later today and then announce its decision on interest rates. The central bank is expected to keep unchanged its benchmark lending rate at 3.50 percent, its deposit facility rate at 2.75 percent and its lending facility rate at 4.25 percent.
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