FX.co ★ Mild Support Called For Indonesia Stock Market

The Indonesian stock market has experienced alternating days of gains and losses over the past four trading sessions, following a two-day rally that saw a nearly 130-point or 1.9 percent increase. The Jakarta Composite Index (JCI) is now marginally above the 6,900 mark and may see further gains on Tuesday.

The global outlook for Asian markets appears stable with a slight upward potential, ahead of the Federal Open Market Committee (FOMC) statement scheduled for Wednesday. European markets experienced declines, whereas U.S. markets saw gains, suggesting a modest rise for Asian markets.

On Monday, the JCI closed just slightly higher, driven by varied performances across financial stocks, cement companies, and resource sectors. The index edged up by 3.00 points or 0.04 percent, closing at 6,900.90.

Key movers included Bank Negara Indonesia, which dropped 1.91 percent, while Bank Central Asia surged 2.14 percent, and Bank Rakyat Indonesia increased by 1.15 percent. Indocement fell by 0.32 percent, Semen Indonesia spiked by 2.24 percent, and Indofood Sukses Makmur decreased by 0.40 percent. United Tractors plunged 2.08 percent, Astra International slid 1.10 percent, and Vale Indonesia tumbled by 2.92 percent. Bank Mandiri and Bank Danamon Indonesia remained unchanged.

Wall Street's lead points to a slight upward trend, with major indices opening lower on Monday but gradually moving into positive territory. The Dow gained 69.05 points or 0.18 percent to finish at 38,868.04, while the NASDAQ added 51.90 points or 0.35 percent to close at 17,192.53, and the S&P 500 rose by 13.80 points or 0.26 percent to end at 5,360.79.

Traders appeared hesitant to make big moves ahead of key events this week, including the Federal Reserve’s monetary policy meeting. The Fed is widely expected to maintain interest rates at their current levels in its announcement on Wednesday. Given the expected decision, market participants are likely to focus on the Fed officials' economic and rate projections.

Ahead of the Fed announcement, the Labor Department will release its May consumer price inflation report. Meanwhile, crude oil prices surged on Monday amid positive energy demand outlooks, with West Texas Intermediate Crude oil futures for July rising by $2.21 or about 2.9 percent, closing at $77.74 per barrel.

Closer to home, Indonesia is set to release its retail sales figures for April today, following a March gain of 9.3 percent year-on-year.