Indonesia stock market lower, but tipped to bounce back
The Indonesia stock market has moved lower in four straight sessions, plummeting more than 800 points
The Indonesia stock market has moved lower in four straight sessions, plummeting more than 800 points or 18.5 percent along the way. The Jakarta Composite Index now rests just above the 4,100-point plateau although it may finally stop the bleeding on Friday.
The global forecast for the Asian markets is positive following a rebound in crude oil prices and optimism over stimulus from banks and governments. The European and U.S. markets were broadly higher and the Asian bourses are tipped to open in similar fashion.
The JCI finished with massive losses again on Thursday with damage across the board – especially among the financial shares, cement companies and resource stocks.
For the day, the index plunged 225.25 points or 5.20 percent to finish at 4,105.42 after trading between 4,093.71 and 4,329.62.
Among the actives, Bank Danamon Indonesia skidded 6.95 percent, while Bank Mandiri shed 6.99 percent, Bank Central Asia and Indofood Suskes both lost 7.00 percent, Bank Negara Indonesia retreated 6.90 percent, Bank Rakyat Indonesia sank 6.69 percent, Indosat dropped 6.93 percent, Indocement declined 6.78 percent, Semen Indonesia fell 6.75 percent, Aneka Tambang plunged 6.70 percent, Vale Indonesia plummeted 6.80 percent, Timah cratered 6.88 percent and Bumi Resources was unchanged.
The lead from Wall Street suggests upside punctuated by continued volatility as stocks opened lower on Thursday before surging as the day progressed. Many of the gains evaporated, but the markets still ended in the green.
The Dow climbed 188.27 points or 0.95 percent to finish at 20.087.19, while the NASDAQ jumped 160.73 points or 2.30 percent to 7,150.58 and the S&P 500 added 11.29 points or 0.47 percent to 2,409.39.
The early weakness on Wall Street was chased away by bargain hunting following recent heavy losses.
Worries about outlook of energy demand subsided thanks to massive relief packages announced by global central banks and governments.
The Bank of England cut the bank rate again, to a record low on Thursday, and expanded its bond buying scheme and the targeted funding measure for small and medium businesses, extending further support to the UK economy amid the spread of the coronavirus, or Covid-19.
Crude oil prices skyrocketed Thursday, earning the front month futures contracts their biggest single-day gains in percentage terms. West Texas Intermediate Crude oil futures for April ended up $4.85 or 23.8 percent at $25.22 a barrel.