Indonesia Bourse Likely To Reclaim 7,400-Point Level

(RTTNews) - The Indonesia stock market headed south again on Wednesday, one day after ending the two-day slide in which it had slumped almost 100 points or 1.4 percent. The Jakarta Composite Index now rests just above the 7,380-point plateau although it's likely to see renewed support on Thursday.

The global forecast for the Asian markets is upbeat following a clear result in the U.S. presidential election. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The JCI finished sharply lower on Wednesday following losses from the telecoms, financial shares and resource stocks, while the cement stocks were mixed.

For the day, the index stumbled 108.06 points or 1.44 percent to finish at 7,383.87 after trading between 7,363.03 and 7,506.60.

Among the actives, Bank CIMB Niaga slumped 1.36 percent, while Bank Mandiri plunged 5.42 percent, Bank Danamon Indonesia skidded 1.18 percent, Bank Negara Indonesia tanked 5.09 percent, Bank Central Asia fell 0.48 percent, Bank Rakyat Indonesia tumbled 2.34 percent, Indosat Ooredoo Hutchison plummeted 5.86 percent, Indocement retreated 1.80 percent, Semen Indonesia added 0.55 percent, Indofood Sukses Makmur dropped 0.95 percent, United Tractors improved 0.74 percent, Astra International stumbled 2.42 percent, Energi Mega Persada surrendered 5.07 percent, Astra Agro Lestari fell 0.37 percent, Aneka Tambang declined 2.22 percent, Jasa Marga rose 0.21 percent, Vale Indonesia sank 2.86 percent, Timah lost 5.26 percent, Bumi Resources was down 2.17 percent and Bank Maybank Indonesia was unchanged.

The lead from Wall Street is broadly positive as the major averages opened higher and only accelerated as the day progressed, ending at session highs.

The Dow surged 1,508.05 points or 3.57 percent to finish at 43,729.93, while the NASDAQ rallied 544.29 points or 2.95 percent to close at 18,983.46 and the S&P 500 spiked 146.28 points or 2.53 percent to end at 5,929.04.

The extended rally on Wall Street came after former President Trump was declared the winner in the presidential election versus Vice President Kamala Harris.

The decisive victory helped avoid the uncertainty that would be created by a prolonged vote counting process and potential legal challenges.

Traders will turn their attention to the Federal Reserve, which is due to announce its latest monetary policy decision later today. The Fed is widely expected to lower interest rates by 25 basis points, but the accompanying statement could the impact the outlook for future rate cuts.

Oil prices drifted lower on Wednesday after data showed crude inventories in the U.S. rose more than expected last week, while a stronger dollar also weighed. West Texas Intermediate Crude oil futures for December closed down $0.30 or 0.42 percent at $71.69 a barrel.