Anticipated Green Opening for Indonesian Stock Market on Wednesday
Indonesia Stock Market Bounces Back after Israel-Iran Ceasefire
It's game on for the Indonesia stock market! After a four-day losing streak, the Jakarta Composite Index (JCI) finally took a break and started climbing again on Tuesday. The JCI is just a hair shy of the 6,870-point plateau, with anticipation of continued strength on Wednesday.
The positive vibes are courtesy of the reluctant truce between Israel and Iran. As tensions seem to ease in the Middle East, global stock markets, including the European and U.S. markets, have been on an upward trend. It looks like the Asian bourses, including Indonesia, will follow this lead.
The JCIfinished sharply higher on Tuesday, with financial shares, resource stocks, and cement companies leading the charge. Notable gainers include Bank Mandiri (+2.13%), Bank Negara Indonesia (+1.97%), Semen Indonesia (+2.77%), and Vale Indonesia (+2.26%). As a result, the index rallied 82.03 points or 1.21%, closing at 6,869.17 after touching 6,924.97.
Although there have been accusations of ceasefire violations from both sides, traders appear optimistic that the situation will improve. Meanwhile, the Fed Chair Jerome Powell's comments about the central bank's plans to stay put, despite pressure from Trump to lower interest rates, have been largely disregarded.
Interestingly, consumer confidence in the U.S. economy took a hit, as revealed by the Conference Board's report. Despite this unexpected deterioration, the major U.S. averages opened strong and remained solid throughout the day, ending near session highs.
So, what's the prediction for the JCI? Analysts recommend holding and waiting, expecting further consolidation of about 1% before the index stabilizes or moves higher. The technical analysis suggests that the JCI was under pressure, but the ceasefire could potentially reverse the consolidation phase and set the stage for a renewed uptrend.
In essence, the Indonesian stock market and the broader Asian market are on the rise following the Israel-Iran ceasefire. As long as regional and global conditions remain favorable, the upward trend is likely to continue. Keep your eyes on the JCI for more updates!
With the ceasefire between Israel and Iran, anticipation for continued strength in the Asian stock markets, including Indonesia, has grown. As a result, investors may consider reinvesting in financial sectors, such as banking and resource stocks, anticipating a renewed uptrend in the Indonesian stock market.
