Continued Support Anticipated For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has tracked higher in four straight sessions, gathering almost 240 points or 3.7 percent along the way. The Jakarta Composite Index now rests just above the 6,630-point plateau and it's tipped to open in the green again on Thursday.

The global forecast for the Asian markets is broadly positive on easing concerns over the U.S. Federal Reserve's independence. The European and U.S. markets were firmly higher and the Asian markets are tipped to follow that lead.

The JCI finished sharply higher on Wednesday following gains from the financial shares and food companies, although the resource stocks were down on profit taking.

For the day, the index rallied 96.11 points or 1.47 percent to finish at 6,634.38 after trading between 6,588.26 and 6,642.92.

Among the actives, Bank CIMB Niaga climbed 1.64 percent, while Bank Mandiri soared 3.81 percent, Bank Negara Indonesia spiked 3.49 percent, Bank Central Asia improved 2.65 percent, Bank Rakyat Indonesia surged 3.58 percent, Indosat Ooredoo Hutchison gained 0.58 percent, Indocement sank 0.47 percent, Semen Indonesia rose 0.39 percent, Indofood Sukses Makmur rallied 2.08 percent, United Tractors perked 0.11 percent, Astra International jumped 1.69 percent, Energi Mega Persada added 0.54 percent, Astra Agro Lestari strengthened 1.32 percent, Aneka Tambang crashed 5.48 percent, Vale Indonesia plunged 4.30 percent, Timah tanked 3.27 percent, Bumi Resources stumbled 3.57 percent and Bank Danamon Indonesia was unchanged.

The lead from Wall Street is upbeat as the major averages opened sharply higher on Wednesday; they came off the day's highs but still finished solidly in the green.

The Dow soared 419.59 points or 1.07 percent to finish at 39,606.57, while the NASDAQ rallied 407.63 points or 2.50 percent to close at 16,708.05 and the S&P 500 jumped 88.10 points or 1.67 percent to end at 5,375.86.

Stocks surged early after President Donald Trump appeared to soften his stance on Federal Reserve Chair Jerome Powell. Trump's attacks on Powell had led to anxiety on Wall Street about the Fed's independence.

The president also suggested he's willing to take a less confrontational approach to trade talks with China, predicting the current 145 percent tariff on Chinese imports will "come down substantially."

Buying interest waned over the course of the session, however, as traders continue to express concerns about recent volatility in the markets triggered largely by Trump's words.

Crude oil prices moved sharply lower on Wednesday after reports suggested that OPEC may accelerate oil output hikes in June for a second consecutive month. West Texas Intermediate crude for June delivery tumbled $1.52 or 2.4 percent to $62.15 a barrel.