FX.co ★ Indonesia Bourse May Extend Winning Streak

The Indonesia stock market has experienced gains for two consecutive sessions, amassing over 60 points or a 0.8% increase. The Jakarta Composite Index now hovers just below the 7,560 mark and is poised to potentially extend its growth on Wednesday.

The forecast for Asian markets indicates a slight upward trend, underpinned by support from technology companies. While European markets saw a decline, U.S. markets were on the rise, suggesting that Asian markets may follow the latter's trajectory.

On Tuesday, the Jakarta Composite Index saw moderate gains, driven by strong performances in the food and financial sectors, despite weaknesses in cement and resource companies. Specifically, the index rose by 53.01 points or 0.71% to conclude the session at 7,557.14, with trading occurring between 7,449.48 and 7,592.88.

Key market movements included Bank CIMB Niaga climbing 2.19%, Bank Mandiri rising 2.91%, Bank Negara Indonesia increasing 2.88%, Bank Central Asia gaining 0.97%, and Bank Rakyat Indonesia advancing 3.73%. In contrast, Indosat Ooredoo Hutchison decreased 0.93%, Indocement dropped 0.72%, Semen Indonesia declined 0.25%, while United Tractors fell 2.40%. Astra International surged 2.45%, but Energi Mega Persada plummeted 4.10%. Elsewhere, Astra Agro Lestari edged down 0.75%, Aneka Tambang slipped 1.29%, Jasa Marga eased 0.20%, Vale Indonesia fell sharply by 6.14%, Timah declined 1.60%, and Bumi Resources tumbled 3.60%. Bank Danamon Indonesia and Bank Maybank Indonesia remained unchanged.

Meanwhile, Wall Street's influence is optimistic as major indices, although starting mixed, quickly moved into positive territory. The Dow Jones Industrial Average rose 126.13 points or 0.30% to close at 42,080.37, the NASDAQ jumped 259.01 points or 1.45% to finish at 18,182.92, and the S&P 500 increased by 55.19 points or 0.97% to settle at 5,751.13.

The rally on Wall Street was bolstered by investors seeking bargains, particularly in the technology sector.

In economic developments, the U.S. trade deficit narrowed to $70.4 billion in August 2024, marking a five-month low, down from a revised $78.9 billion in July. This was due to a 2% increase in exports, reaching a record $271.8 billion, while imports decreased by 0.9% to $342.2 billion.

The U.S. is also set to release data on consumer and producer price inflation later this week.

Oil prices dropped on Tuesday as concerns over supply disruptions lessened due to reports suggesting Israel is unlikely to target Iranian oil facilities. West Texas Intermediate Crude oil futures for November fell $3.57 or 4.63% to $73.57 per barrel.

Domestically, Indonesia is expected to release August retail sales data later today; for July, sales increased by 4.5% year-on-year.