Indonesia Stock Market Set To Extend Tuesday's Gains

(RTTNews) - The Indonesia stock market rebounded on Tuesday, one day after ending the three-day winning streak in which it had picked up more than 70 points or 1.1 percent. The Jakarta Composite Index now rests just above the 6,935-point plateau and it's likely in store for more support on Wednesday.

The global forecast for the Asian markets is upbeat on increasing optimism over the outlook for interest rates. The European markets were mixed and flat and the U.S. bourses were solidly higher and the Asian markets figure to split the difference.

The JCI finished modestly higher on Tuesday following gains from the financial shares and mixed performances from the resource and cement companies.

For the day, the index advanced 61.51 points or 0.89 percent to finish at 6,935.30.

Among the actives, Bank Danamon Indonesia surged 5.45 percent, while Bank CIMB Niaga collected 1.66 percent, Bank Negara Indonesia perked 0.27 percent, Bank Central Asia strengthened 1.43 percent, Bank Mandiri soared 3.04 percent, Bank Rakyat Indonesia was up 0.21 percent, Indosat Ooredoo Hutchison retreated 1.67 percent, Indocement tumbled 1.82 percent, United Tractors soared 4.08 percent, Astra International added 0.43 percent, Energi Mega Persada declined 1.59 percent, Astra Agro Lestari shed 0.61 percent, Aneka Tambang dropped 0.88 percent, Vale Indonesia climbed 1.03 percent, Timah gained 0.41 percent, Bumi Resources rallied 2.82 percent and Semen Indonesia and Indofood Suskes were unchanged.

The lead from Wall Street is broadly positive as the major averages shook off flat morning trade on Tuesday, rallying in the afternoon.

The Dow jumped265.67 points or 0.78 percent to finish at 34,156.69, while the NASDAQ surged 226.34 points or 1.90 percent to end at 12,113.79 and the S&P 500 advanced 52.92 points or 1.29 percent to close at 4,164.00.

The late rally on Wall Street came in reaction to Federal Reserve Chair Jerome Powell's remarks at the Economic Club of Washington. In a Q&A session, Powell said he expects 2023 to be a year of "significant declines in inflation."

Powell said inflation is beginning to ease, though he expects it to be a long process and cautioned that interest rates could rise more than markets expect if the economic data doesn't cooperate.

Oil prices advanced Tuesday on expectations of higher energy demand from China, and on supply concerns following a massive earthquake in Turkey on Monday. West Texas Intermediate Crude oil futures for March ended higher by $3.02 or 4.1 percent at $77.14 a barrel, the highest close since January 31.

Closer to home, Indonesia will see January results for its consumer confidence index later today; in December, the index score was 119.9.