Bargain Hunting Expected For Indonesia Stock Market

(RTTNews) – The Indonesia stock market has finished lower in two of three trading days since the end of the modest two-day winning streak in which it had collected more than 30 points or 0.4 percent. The Jakarta Composite Index now sits just above the 6,640-point plateau although it’s expected to move higher again on Wednesday.

The global forecast for the Asian markets is positive on bargain hunting and encouraging inflation data. The European and U.S. markets were sharply higher and the Asian bourses figure to follow that lead.

The JCI finished sharply lower on Tuesday with damage across the board, especially among the financials and resource stocks.

For the day, the index gave away 145.14 points or 2.14 percent to finish at 6,641.81.

Among the actives, Bank Danamon Indonesia declined 2.19 percent, while Bank CIMB Niaga shed 0.81 percent, Bank Negara Indonesia slid 2.50 percent, Bank Central Asia tumbled 2.63 percent, Bank Mandiri plunged 4.11 percent, Bank Rakyat Indonesia weakened 2.48 percent, Indosat Ooredoo Hutchison retreated 2.47 percent, Indocement eased 0.23 percent, Semen Indonesia lost 0.75 percent, Indofood Suskes advanced 0.82 percent, United Tractors surrendered 3.47 percent, Astra International tanked 2.53 percent, Energi Mega Persada crashed 4.20 percent, Astra Agro Lestari stumbled 1.54 percent, Aneka Tambang dropped 1.89 percent, Vale Indonesia slumped 1.62 percent, Timah sank 3.59 percent and Bumi Resources plummeted 4.65 percent.

The lead from Wall Street is upbeat as the major averages opened sharply higher on Tuesday and remained in the green throughout the session.

The Dow jumped 336.26 points or 1.06 percent to finish at 32,155.40, while the NASDAQ rallied 239.31 points or 2.14 percent to end at 11,428.15 and the S&P 500 advanced 63.53 points or 1.65 percent to close at 3,919.29.

The strength on Wall Street was fueled by bargain hunting, particularly in the banking sector after regulators said there won’t be a relapse of the financial crisis from 15 years ago.

Data showing a drop in U.S. consumer prices in February contributed significantly to the positive mood in the market, allaying fears of an accelerated rate hike from the Federal Reserve.

Crude oil prices fell sharply to a nine-week low on Tuesday amid concerns a fresh financial crisis following the collapse of Silicon Valley Bank and Signature Bank could significantly hurt demand. West Texas Intermediate Crude oil futures for April sank $3.47 or 4.7 percent at $71.33 a barrel.

Closer to home, Indonesia will provide February figures for imports, exports and trade balance later today. Imports are expected to jump 9.74 percent on year after adding 1.27 percent in January. Exports are called higher by an annual 5.00 percent, down from 16.37 percent in the previous month. The trade surplus is pegged at $3.27 billion, down from $3.87 billion a month earlier.