The Indonesian stock market has experienced consecutive declines, losing over 130 points or 1.8% in the process. The Jakarta Composite Index is currently positioned slightly above the 6,950-point mark, although indications suggest a positive opening on Wednesday.
The global forecast for Asian markets remains unclear due to conflicting signals concerning interest rates. European and U.S. markets showed mixed and largely unchanged outcomes, suggesting Asian exchanges may take a similar trajectory.
On Tuesday, the JCI saw a modest decline, with losses in the financial and cement sectors counterbalanced by gains from resource companies. The Index fell by 60.21 points, or 0.86%, closing at the daily low of 6,956.67 after reaching a peak of 7,042.33.
In active trading, Bank CIMB Niaga decreased by 0.29%, Bank Mandiri dropped 2.26%, Bank Danamon Indonesia fell 0.79%, Bank Negara Indonesia declined 1.90%, Bank Central Asia retreated 1.55%, and Bank Rakyat Indonesia decreased by 1.30%. Indosat Ooredoo Hutchison was down 1.26%, Indocement slipped 1.23%, Semen Indonesia plunged 4.79%, Indofood Sukses Makmur fell 2.59%. Meanwhile, United Tractors rose 0.39%, Energi Mega Persada improved 0.81%, Astra Agro Lestari dropped 1.66%, Aneka Tambang advanced 2.70%, Vale Indonesia surged 7.29%, Timah soared 4.67%, Bumi Resources spiked 5.98%, and Astra International remained unaffected.
Wall Street's performance provided limited insight, as the major indexes opened higher on Tuesday but quickly lost momentum, ending up with mixed results. The Dow Jones Industrial Average gained 221.16 points, or 0.52%, closing at 42,518.28. The NASDAQ fell by 43.71 points, or 0.23%, to settle at 19,044.39, while the S&P 500 increased by 6.69 points, or 0.11%, finishing at 5,842.91.
Early strength in Wall Street was prompted by the Labor Department's report indicating producer prices increased slightly less than anticipated in December. This slight deviation helped alleviate some concerns about inflation and interest rates, although higher annual growth kept buying interest muted.
Investors may have been hesitant to make significant moves ahead of today's anticipated report on consumer price inflation.
Oil prices retreated from five-month highs on Tuesday as investors assessed the potential effects of proposed tariffs by Donald Trump on imports. West Texas Intermediate Crude futures for February settled lower, dropping $1.32 or approximately 1.67%, reaching $77.50 a barrel.
Domestically, Indonesia is expected to release its December data on imports, exports, and trade balance later today. Imports are projected to increase by 4.0% year-over-year, up from 0.01% in November. Exports are anticipated to rise by 8.5% annually, easing from a 9.14% increase in the previous month. The trade surplus is expected to shrink slightly to $4.33 billion, from $4.42 billion a month earlier.
Additionally, Indonesia's central bank will conclude its monetary policy meeting today and announce its decision on interest rates. The key rates, including the benchmark lending rate at 6.00%, deposit facility rate at 5.25%, and lending facility rate at 6.75%, are expected to remain unchanged.
The material has been provided by InstaForex Company -
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