Rebound Predicted For Indonesia Stock Market

(RTTNews) - The Indonesia stock market on Thursday saw an end to the three-day winning streak in which it had advanced more than 70 points or 1 percent. The Jakarta Composite Index now sits just above the 7,200-point plateau and it's got a green light for Friday's trade.

The global forecast for the Asian markets is positive, with many believing that the heavy selling earlier this week was overdone. 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 slightly lower on Thursday following mixed performances from the financial shares, cement companies and resource stocks.

For the day, the index slipped 6.25 points or 0.09 percent to finish at 7,201.70 after trading between 7,191.69 and 7,248.53.

Among the actives, Bank CIMB Niaga sank 0.85 percent, while Bank Mandiri retreated 1.50 percent, Bank Danamon Indonesia tanked 2.12 percent, Bank Negara Indonesia slid 0.43 percent, Bank Central Asia rallied 1.57 percent, Bank Rakyat Indonesia collected 0.88 percent, Indocement skidded 1.11 percent, Semen Indonesia jumped 2.02 percent, Indofood Suskes lost 0.39 percent, United Tractors shed 0.65 percent, Energi Mega Persada climbed 0.98 percent, Astra Agro Lestari fell 0.36 percent, Aneka Tambang dropped 0.97 percent, Vale Indonesia strengthened 1.55 percent, Timah advanced 0.87 percent, Bumi Resources surrendered 2.20 percent and Astra International and Indosat Ooredoo Hutchison were unchanged.

The lead from Wall Street is upbeat as the major averages opened slightly higher on Thursday and largely accelerated as the day progressed, ending near session highs.

The Dow rallied 369.54 points or 0.97 percent to finish at 38,519.84, while the NASDAQ jumped 197.63 points or 1.30 percent to end at 15,361.64 and the S&P 500 gained 60.54 points or 1.25 percent to close at 4,906.19.

The rebound on Wall Street came as traders picked up stocks at reduced levels after Wednesday's selloff. The Federal Reserve signals that an interest rate cut in March is unlikely, but economists believe it is a matter of "when, not if" the central bank will eventually lower rates.

A continued decrease by treasury yields may also have contributed to the buying interest, with the yield on the benchmark 10-year note falling to its lowest levels in over a month.

In U.S. economic news, the Labor Department said first-time claims for U.S. jobless benefits unexpectedly saw a modest increase last week. Also, the Institute for Supply Management said U.S. manufacturing activity increased in January but continues to indicate contraction.

Oil futures settled lower on Thursday with traders following the negotiations of a cease-fire in the Israel-Hamas war, although a possible pick-up in energy demand helped limit the downside. West Texas Intermediate Crude oil futures for March sank $2.03 or 2.7 percent at $73.82 a barrel.