Indonesia Bourse May Break Resistance At 7,500 Points

(RTTNews) - The Indonesia stock market bounced higher again on Wednesday, one day after ending the 11-day winning streak in which it had surged more than 530 points or 7.5 percent. The Jakarta Composite Index now sits just beneath the 7,470-point plateau and it may tick higher again on Thursday.

The global forecast for the Asian markets is upbeat on optimism for trade deals. The European and U.S. markets were solidly higher and the Asian bourses are expected to follow that lead.

The JCI finished sharply higher on Wednesday following gains from the financial shares, cement companies and resource stocks.

For the day, the index soared 124.49 points or 1.70 percent to finish at the daily high of 7,469.23 after trading as low as 7,355.00.

Among the actives, Bank CIMB Niaga rose 0.29 percent, while Bank Mandiri collected 0.43 percent, Bank Negara Indonesia strengthened 1.23 percent, Bank Central Asia gathered 0.30 percent, Bank Rakyat Indonesia skidded 1.04 percent, Indosat Ooredoo Hutchison plummeted 6.10 percent, Indocement spiked 2.96 percent, Semen Indonesia rallied 2.49 percent, Indofood Sukses Makmur accelerated 1.52 percent, United Tractors soared 4.12 percent, Astra International surged 5.54 percent, Energi Mega Persada improved 1.67 percent, Astra Agro Lestari added 0.80 percent, Aneka Tambang jumped 2.70 percent, Vale Indonesia advanced 1.65 percent, Timah perked 0.47 percent, Bumi Resources sank 0.83 percent and Bank Danamon Indonesia was unchanged.

The lead from Wall Street is strong as the major averages opened with modest gains on Wednesday but continued to climb as the day progressed, ending at session highs.

The Dow surged 507.85 points or 1.14 percent to finish at 45,010.29, while the NASDAQ jumped 127.33 points or 0.61 percent to close at a record 21,020.02 and the S&P 500 gained 49.29 points or 0.78 percent to end at 6,358.91, also a record.

The strength on Wall Street came after President Donald Trump announced trade deals with Japan and the Philippines.

The announcement of these trade deals spurred expectations of further trade agreements as the Aug. 1 deadline nears.

On the U.S. economic front, a report released by the National Association of Realtors showed existing home sales in the U.S. pulled back by more than expected in the month of June.

Crude oil prices dipped slightly on Wednesday as uncertainty persists in U.S. trade talks ahead of the deadline. West Texas Intermediate crude for September delivery eased $0.06 to $65.25 per barrel.