Win Streak May Continue For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has climbed higher in back-to-back sessions, gathering almost 280 points or 3 percent in that span. The Jakarta Composite Index now sits just above the 7,325-point plateau and it may add to its winnings on Thursday.

The global forecast for the Asian markets is upbeat on an improved outlook for interest rates, although geopolitics may limit the upside. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The JCI finished sharply higher on Wednesday following gains from the food, finance, telecom, cement and resource sectors.

For the day, the index rallied 130.75 points or 1.82 percent to finish at 7,326.76 after trading between 7,187.48 and 7,328.32.

Among the actives, Bank CIMB Niaga advanced 0.86 percent, while Bank Mandiri strengthened 1.59 percent, Bank Danamon Indonesia collected 0.40 percent, Bank Negara Indonesia accelerated 3.56 percent, Bank Rakyat Indonesia spiked 2.59 percent, Bank Maybank Indonesia dropped 0.92 percent, Indosat Ooredoo Hutchison jumped 1.99 percent, Indocement climbed 1.09 percent, Semen Indonesia soared 4.56 percent, Indofood Sukses Makmur improved 0.96 percent, United Tractors rallied 1.75 percent, Astra International gained 1.95 percent, Energi Mega Persada surged 3.42 percent, Astra Agro Lestari increased 2.04 percent, Aneka Tambang added 1.03 percent, Jasa Marga rose 2.69 percent, Vale Indonesia gathered 4.84 percent, Timah skyrocketed 9.77 percent, Bumi Resources was up 1.46 percent and Bank Central Asia was unchanged.

The lead from Wall Street is positive as the major averages opened higher on Wednesday and remained in the green throughout the session before all ending at record closing highs.

The Dow rallied 308.51 points or 0.69 percent to finish at 45,014.04, while the NASDAQ spiked 254.21 points or 1.30 percent to close at 19,735.12 and the S&P gained 36.61 points or 0.61 percent to end at 6,086.49.

The strength on Wall Street was generated by optimism about the outlook for interest rates following the release of some weaker than expected U.S. economic data.

Payroll processor ADP said private sector employment in the U.S. increased by slightly less than expected in November. Also, the Institute for Supply Management showed U.S. service sector growth slowed more than anticipated last month.

Following the data, CME Group's FedWatch Tool is indicating a 75.5 percent chance the Federal Reserve will lower interest rates by 25 basis points later this month.

However, during remarks later in the afternoon, Fed Chair Jerome Powell reiterated the central bank will take a cautious approach to cutting rates due to the continued strength of the economy.

Crude oil prices tumbled on Wednesday on geopolitical concerns in the Middle East and in the Russia/Ukraine conflict, as well as political chaos in South Korea and France. West Texas Intermediate Crude oil futures for January closed down $1.40 or 2 percent at $68.54 a barrel.