Indonesia Bourse Overdue For Consolidation

The Indonesia stock market has finished higher in back-to-back sessions, surging more than 150 points or 1.7 percent along the way. Now at a fresh record closing high, the Jakarta Composite Index sits just above the 9,030-point plateau although it may spin its wheels on Thursday.

The global forecast for the largely overbought Asian markets is negative thanks to geopolitical concerns, with tech shares likely to lead the way lower. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The JCI finished modestly higher on Wednesday following gains from the food and resource companies, while the cement stocks were soft and the financial sector was mixed.

For the day, the index advanced 84.28 points or 0.94 percent to finish at 9,032.58 after trading between 8,979.60 and 9,049.30.

Among the actives, Bank CIMB Niaga shed 0.55 percent, while Bank Mandiri collected 0.41 percent, Bank Danamon Indonesia rose 0.39 percent, Bank Negara Indonesia added 0.46 percent, Bank Central Asia dropped 0.93 percent, Indocement retreated 1.44 percent, Semen Indonesia sank 0.76 percent, Indofood Sukses Makmur gained 0.37 percent, United Tractors perked 0.16 percent, Astra International stumbled 2.40 percent, Energi Mega Persada tanked 1.82 percent, Astra Agro Lestari improved 0.65 percent, Aneka Tambang soared 5.41 percent, Vale Indonesia tumbled 2.66 percent, Timah surged 7.65 percent, Bumi Resources vaulted 3.94 percent, Bank Rakyat Indonesia and Indosat and Ooredoo Hutchison were unchanged.

The lead from Wall Street is weak as the major averages opened in the red on Wednesday and remained under water throughout the session.

The Dow slumped 42.36 points or 0.09 percent to finish at 49,149.63, while the NASDAQ stumbled 238.12 points or 1.00 percent to end at 23,471.12 and the S&P 500 sank 37.14 points or 0.53 percent to close at 6,926.60.

The weakness on Wall Street may partly have reflected growing concerns about rising geopolitical tensions around the world.

President Donald Trump’s threats to take control of Greenland have made headlines recently, while traders are also keeping an eye on political unrest in Iran and the ongoing Russia-Ukraine war.

In economic news, the Commerce Department said retail sales in the U.S. increased more than expected in November. Also, the Labor Department noted a modest increase by U.S. producer prices in November.

Crude oil prices posted sharp gains Wednesday as the probability of U.S. intervention to end the crisis in Iran raises supply-related concerns. West Texas Intermediate crude for February delivery was up $0.76 or 1.24 percent at $61.91 per barrel.