FX.co ★ Indonesia Bourse Expected To Remain Rangebound

The Indonesian stock market experienced a resurgence on Wednesday, rebounding after a brief halt to its three-day winning streak during which it had accumulated over 160 points, or a 2.6 percent increase. The Jakarta Composite Index (JCI) is now positioned slightly above 6,905 points, but projections suggest a potential decline on Thursday.

The outlook for Asian markets remains mixed and largely flat due to impending key economic reports. While European markets recorded slight losses, U.S. stock exchanges noted modest gains, leading to a split expectation for Asian markets.

On Wednesday, the JCI recorded modest gains, driven by improvements in resource stocks despite the cement sector's weakness and a mixed performance from the financial sector.

Specifically, the JCI climbed 22.94 points, or 0.33 percent, closing at 6,905.64, fluctuating between 6,885.40 and 6,936.26 throughout the trading session.

Of note, Bank CIMB Niaga increased by 0.29 percent, Bank Mandiri fell by 1.27 percent, Bank Danamon Indonesia rose by 0.40 percent, Bank Negara declined by 1.34 percent, Bank Rakyat Indonesia marginally dropped by 0.23 percent, Bank Central Asia gained 1.04 percent, Indosat Ooredoo Hutchison improved by 0.72 percent, Indocement Tunggal decreased by 0.35 percent, Indofood Sukses Makmur fell by 0.84 percent, Semen Indonesia and Aneka Tambang both decreased by 0.82 percent, United Tractors increased by 0.58 percent, Astra International gained 0.45 percent, Energy Mega Persada rallied with a 2.69 percent increase, Bumi Resources rose by 1.30 percent, Vale Indonesia added 0.50 percent, Timah surged by 3.57 percent, and Astra Agro Lestari declined by 0.47 percent.

Wall Street provided a cautiously optimistic lead, as major indexes opened lower on Wednesday, hovering near the baseline for much of the day until a late surge pushed them into positive territory.

The Dow Jones Industrial Average edged up by 15.64 points, or 0.04 percent, ending at 39,127.80. The NASDAQ Composite climbed 87.50 points, or 0.49 percent, concluding at 17,805.16, and the S&P 500 rose by 8.50 points, or 0.16 percent, finishing at 5,477.90.

This ambivalence on Wall Street is attributed to investor anticipation of upcoming key U.S. inflation data, which is expected to provide insights into future interest rate trends.

Attention centered on bank stocks as the market awaits the annual stress test results from the central bank. Meanwhile, energy stocks faced challenges due to low oil prices.

In economic developments, the U.S. Commerce Department reported a significant decline in new home sales for May, alongside a downturn in building permits.

Crude oil futures also saw downward movement initially, following an uptick in U.S. crude inventories from the past week, but managed to rebound, closing the session slightly higher. Specifically, West Texas Intermediate Crude futures for August increased by $0.07, reaching $80.90 per barrel.