The Indonesia stock market displayed a mix of gains and losses over the past few trading sessions, interrupting a seven-day winning streak that had seen the Jakarta Composite Index (JCI) surge nearly 400 points, or around 5 percent. Currently, the JCI reached a record closing high, ending the latest session just above the 8,125-point mark, although analysts anticipate potential profit-taking in the near term.
On Tuesday, the JCI experienced a notable increase, climbing 85.16 points, or 1.06 percent, to close at 8,125.20 after touching a low of 8,039.95 earlier in the day. The rise was largely driven by significant gains in resource stocks, with mixed results from the financial sector and cement companies.
Among the notable stocks, Bank Mandiri dipped slightly by 0.23 percent. Conversely, Bank Danamon Indonesia saw a modest gain of 0.42 percent, while Bank Negara Indonesia fell 0.24 percent. Bank Central Asia led the financial sector with a rally of 1.94 percent. Other key performers included Astra International, which surged by 3.51 percent, and Bumi Resources, which skyrocketed 15.70 percent. The overall sentiment was buoyed by heavy trading activity from resource stocks like Timah, which soared by 3.46 percent, and Aneka Tambang, which jumped 2.51 percent.
The broader global market outlook remains uncertain, particularly for Asian markets, which are likely to exhibit a mixed response due to apprehensions regarding interest rate directions. Recent trends in European markets were mixed, while major U.S. indices closed lower, setting a cautious tone for traders across Asia.
The lead from Wall Street was weak, with major averages showing a downward trajectory throughout the trading session. The Dow Jones Industrial Average fell by 88.76 points, or 0.19 percent, closing at 46,292.78. The NASDAQ experienced a larger dip, shedding 215.50 points, or 0.95 percent, to finish at 22,573.47. The S&P 500 also declined, with a drop of 36.83 points, or 0.55 percent, ending at 6,656.92.
Market analysts suggested that the downturn in U.S. stocks may be attributed to concerns over stock valuations, especially following comments from Federal Reserve Chair Jerome Powell. Speaking at an event in Rhode Island, Powell noted that equity prices are currently “fairly highly valued,” raising questions about future market stability. He also pointed out that the Federal Reserve is navigating a complex monetary policy landscape, with near-term inflation risks on the rise while employment risks appear more subdued.
Meanwhile, crude oil prices experienced a significant increase as tensions arose from stalled oil export plans from Iraq to Turkey, stemming from payment issues in the Kurdistan region. As a result, West Texas Intermediate crude for October delivery rose by $1.26, or 2.02 percent, settling at $63.54 per barrel.
As the global market continues to react to these developments, the focus remains on indicators that might influence interest rates and economic stability moving forward.
