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Upper opening predicted for the Indonesian stock market

(RTTNews) – The Indonesian stock market fell again on Wednesday, one session after breaking the three-day slide in which it fell nearly 200 points or 2.9%. The Jakarta Composite Index is now just below the 7,010 plateau, although it is expected to rebound again on Thursday.

Global forecasts for Asian markets are optimistic, with bargain hunting expected after last week’s brutal selling. European and US markets were up and Asian stock exchanges are expected to follow suit.

The JCI ended slightly lower on Wednesday after losses from resource stocks and mixed performance from financial and cement companies.

For the day, the index lost 42.83 points or 0.61% to end at 7,007.05 after trading between 6,966.03 and 7,086.38.

Among assets, Bank Danamon Indonesia fell 2.08%, while Bank CIMB Niaga fell 0.98%, Bank Central Asia fell 1.01%, Bank Mandiri climbed 1.22%, Bank Rakyat Indonesia rebounded 2.06%, Indosat fell 0.74%, Indocement fell 1.36%, Semen Indonesia gained 1.10%, Indofood Suskes slipped 1.09%, United Tractors fell 5.71%, Astra International fell 3.94%, Energi Mega Persada fell 2.67%, Bakrie Sumatera Plantations gained 0.83%, Astra Agro Lestari plunged 3.25% , Aneka Tambang lost 0.46%. Vale Indonesia craterd 3.82%, Timah fell 2.15%, Bumi Resources jumped 3.57% and Bank Negara Indonesia was unchanged.

Wall Street’s advance is positive as major averages opened solidly higher on Wednesday and remained in the green throughout the day, ending near session highs.

The Dow Jones climbed 303.70 points or 1.00% to end at 30,668.53, while the NASDAQ jumped 270.81 points or 2.50% to end at 11,099.15 and the S&P 500 jumped 54.51 points or 1.46% to close at 3,789.99.

The Wall Street rally came even as the Federal Reserve announced the largest interest rate hike in nearly 30 years. The Fed raised the target federal funds rate by 75 basis points to 1.50 to 1.75%, marking the biggest rate hike since 1994.

The widely anticipated Fed move comes as a recent Labor Department report showed consumer price inflation hit the fastest annual rate in 40 years. Citing its targets for maximum employment and inflation at a rate of 2% over the long term, the Fed also indicated that further rate hikes would probably be appropriate.

In economic news, the Commerce Department noted an unexpected drop in US retail sales in May, while a separate report showed US import prices rose less than expected. Additionally, the National Association of Home Builders said home builder confidence fell to its lowest level since June 2020.

Crude oil prices fell on Wednesday after data showed rising U.S. oil inventories last week, and the Federal Reserve raised interest rates by 0.75%. West Texas Intermediate crude oil futures fell $2.21 or 1.8% to $116.72 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.