The Indonesian stock market showed signs of recovery on Wednesday, breaking a three-day losing streak during which it had declined nearly 260 points, or approximately 3.6 percent. The Jakarta Composite Index (JCI) closed the day slightly above the 7,700-point threshold, finishing at 7,699.01 after a day of trading that saw fluctuations between 7,661.28 and 7,726.38. Market observers anticipate that the index will likely hover around this level as trading resumes on Thursday.
Despite the modest gains, which amounted to an increase of 70.40 points or 0.92 percent, the upward momentum was constrained by underperformance in the cement and natural resource sectors. In contrast, notable gains were observed in the financial, food, and telecom segments, contributing to the overall positive shift for the index.
Among individual stocks, Bank CIMB Niaga recorded a minor gain of 0.30 percent, while Bank Mandiri experienced a significant uptick of 2.09 percent. On the other hand, Bank Danamon Indonesia saw a decrease of 0.40 percent. Meanwhile, Bank Central Asia stood out with a robust gain of 3.65 percent, and Bank Rakyat Indonesia also performed well with a 2.37 percent increase. Conversely, resource companies faced challenges, with Indocement slipping by 1.44 percent, Semen Indonesia down by 1.09 percent, and other notable declines across companies like United Tractors, which fell by 3.12 percent, and Aneka Tambang, which plummeted by 4.10 percent.
The performance of the U.S. markets influenced sentiments worldwide, with Wall Street ending the day in a mixed pattern. The Dow Jones Industrial Average closed down 220.42 points, or 0.48 percent, at 45,490.92, while the NASDAQ added a slight 6.57 points or 0.03 percent, finishing at 21,886.06. The S&P 500 also gained 19.43 points, or 0.30 percent, to close at 6,532.04. This mixed performance was largely attributed to recent labor data reporting a modest decline in U.S. producer prices, which had initially stoked optimism regarding potential interest rate cuts by the Federal Reserve in the upcoming monetary policy meeting.
Traders remained cautious, looking ahead to the crucial consumer price inflation report that is scheduled for release later today. This upcoming data is expected to significantly influence the outlook for interest rates, causing traders to adjust their strategies.
In the commodities market, crude oil prices rose on the back of geopolitical tensions in both the Middle East and Europe, compounded by U.S. inflation data that fueled expectations for interest rate reductions. West Texas Intermediate crude for October delivery saw an increase of $1.07, or 1.71 percent, climbing to $63.70 per barrel.
As the markets react to these developments, all eyes will be on the upcoming inflation report, which could shape market sentiment in the short term.
