The Indonesian stock market has experienced a decline over the past two sessions, losing more than 130 points or approximately 1.8%. Currently, the Jakarta Composite Index is positioned slightly above the 6,950-level, yet indications suggest a positive opening on Wednesday.
Globally, the outlook for Asian markets remains uncertain due to mixed signals concerning interest rate prospects. Both European and U.S. markets exhibited slight variations, with little overall change. Consequently, Asian markets are anticipated to follow a similar trend.
On Tuesday, the Jakarta Composite Index registered a minor decline, with losses in financial and cement stocks partially countered by gains in resource companies. The index dropped by 60.21 points or 0.86%, closing at its daily low of 6,956.67, after reaching a peak of 7,042.33.
In terms of active stocks, CIMB Niaga decreased by 0.29%, Bank Mandiri fell 2.26%, Bank Danamon Indonesia declined 0.79%, Bank Negara Indonesia slid 1.90%, Bank Central Asia dropped 1.55%, and Bank Rakyat Indonesia decreased 1.30%. Indosat Ooredoo Hutchison fell 1.26%, Indocement dropped 1.23%, and Semen Indonesia plunged notably by 4.79%. Indofood Sukses Makmur declined 2.59%, while United Tractors rose 0.39%, and Energi Mega Persada advanced 0.81%. Astra Agro Lestari slid 1.66%, whereas Aneka Tambang rallied 2.70%, Vale Indonesia surged 7.29%, Timah increased 4.67%, Bumi Resources climbed 5.98%, and Astra International remained unchanged.
Turning to Wall Street, limited direction was observed as major averages opened strong but quickly weakened, resulting in a mixed finish. The Dow Jones Industrial Average gained 221.16 points or 0.52% to close at 42,518.28. Meanwhile, the NASDAQ fell 43.71 points or 0.23% to 19,044.39, and the S&P 500 gained 6.69 points or 0.11% to settle at 5,842.91.
Initial gains in U.S. markets were spurred by the Labor Department's report indicating producer prices increased slightly less than anticipated in December. This smaller-than-expected rise alleviated some concerns about inflation and interest rates, although the rapid annual growth still acted as a deterrent to more enthusiastic buying. Investors also showed caution, awaiting the release of a more closely monitored consumer price inflation report later today.
Oil prices retreated from five-month highs on Tuesday as market focus shifted to the potential impact of proposed tariffs by former President Donald Trump on imports. West Texas Intermediate Crude oil futures for February settled lower, decreasing $1.32 or about 1.67% to $77.50 per barrel.
Domestically, Indonesia is set to release December data on imports, exports, and trade balance later today. Imports are predicted to grow by 4.0% year-over-year, up from 0.01% in November. Exports are anticipated to increase an annual 8.5%, down from 9.14% the previous month. The trade surplus is projected at $4.33 billion, slightly reduced from $4.42 billion in the prior month.
Furthermore, the Central Bank of Indonesia is expected to conclude its monetary policy meeting today and announce its decision on interest rates. It is expected that the benchmark lending rate (6.00%), deposit facility rate (5.25%), and lending facility rate (6.75%) will remain unchanged.
The material has been provided by InstaForex Company -
www.instaforex.com
