The Indonesia stock market continued its upward momentum, marking its third consecutive session of gains, with the Jakarta Composite Index (JCI) soaring by nearly 225 points or 2.9 percent in this period. As of the last trading session, the index closed just above the 7,850-point mark, specifically at 7,854.06, reflecting a substantial rise of 106.16 points or 1.37 percent. Daily trading fluctuated between a low of 7,790.79 and a high of 7,854.81.
The impressive performance of the JCI was largely driven by significant advances in various sectors, notably financials, cement companies, and resource stocks. Among the actively traded shares, Bank Rakyat Indonesia saw a notable increase of 2.45 percent, while Bank Negara Indonesia surged by 2.26 percent. Other financial institutions such as Bank Central Asia and Bank Mandiri also posted gains, increasing by 0.96 percent and 0.89 percent, respectively. However, not all stocks performed positively; Bank Danamon Indonesia registered a decline of 0.79 percent and Vale Indonesia fell by 1.66 percent.
The outlook for Monday is uncertain, with global forecasts suggesting a downturn in Asian markets. This anticipated decline is influenced by rising geopolitical tensions in the Middle East, which may create hesitation among investors. In the previous session, European and U.S. markets also experienced downward trends, hinting at a cautious atmosphere for the Asian markets as they prepare for the week ahead.
The previous day on Wall Street saw mixed reactions, with the Dow Jones Industrial Average declining by 273.78 points or 0.59 percent, closing at 45,834.22. In contrast, the NASDAQ posted a gain of 98.03 points or 0.44 percent, ending at 22,141.10. The S&P 500 dipped slightly by 3.18 points or 0.05 percent, concluding the session at 6,584.29. This mixed performance reflects traders’ positioning ahead of the forthcoming Federal Reserve’s monetary policy announcement, scheduled for Wednesday.
Market analysts expect the Fed to reduce interest rates by at least a quarter-point, given recent economic indicators that suggest subdued inflation and a softening labor market. Investors will closely monitor the Fed’s accompanying statements and comments from Chair Jerome Powell to assess potential future rate cuts. Current projections indicate the possibility of additional cuts in the upcoming October and December meetings, contingent on the latest economic data.
In a related development, crude oil prices saw a modest increase, attributed to ongoing supply chain concerns stemming from the Russia-Ukraine conflict and new tensions emerging in the Middle East. West Texas Intermediate crude for October delivery rose by $0.31 or 0.50 percent, settling at $62.68 per barrel.
As markets brace for a potentially volatile week, traders will remain vigilant, adapting their strategies to the evolving economic landscape and geopolitical tensions.
