The Indonesia stock market bounced higher again on Monday, one session after snapping the two-day winning streak in which it had risen almost 25 points or 0.3 percent. The Jakarta Composite Index now sits just above the 6,910-point plateau and it may add to its winnings on Tuesday.
Indonesia Stock Market Set to Extend Gains
The Indonesia stock market is expected to extend its gains after bouncing higher on Monday. The Jakarta Composite Index finished the day at 6,910.17 points, gaining 30.19 points or 0.44 percent. This positive momentum suggests that the market may continue to rise in the coming sessions.
Cautious Optimism in Asian Markets
The global forecast for the Asian markets is cautiously optimistic, with investors engaging in bargain hunting after a couple of rough sessions. While the European markets were mixed and the US bourses performed slightly higher, the Asian markets are likely to split the difference. The sentiment across Asia is cautiously optimistic as investors look for opportunities amidst the recent market volatility.
JCI Finishes Higher with Cement and Resource Stocks
The Jakarta Composite Index finished the day higher on Monday, boosted by gains from cement and resource stocks. The index gained 30.19 points or 0.44 percent, closing at its daily high of 6,910.17. Cement stocks, such as Indocement, rallied 2.27 percent, while resource stocks like Semen Indonesia jumped 1.86 percent.
Wall Street Bounces Back, NASDAQ Leads the Way
The US markets showed strength on Monday, with the NASDAQ leading the way. The Dow added 26.23 points or 0.07 percent to close at 35,307.63, while the NASDAQ jumped 143.48 points or 1.05 percent to end at 13,788.33. The S&P 500 also gained 25.67 points or 0.58 percent, finishing at 4,489.72. This bounce back in the US markets is due to bargain hunting, as the NASDAQ and S&P 500 had closed at their lowest levels in a month in the previous session.
Oil Prices Drop, Concerns About Energy Demand
Oil prices dropped on Monday, mainly due to concerns about the outlook for energy demand and a stronger dollar. West Texas Intermediate Crude oil futures for September ended lower by $0.68 or 0.8 percent at $82.51 a barrel. The drop in oil prices reflects worries about the global economic recovery and how it may impact energy demand.
In conclusion, the Indonesia stock market is expected to extend its gains based on the positive performance on Monday. The cautious optimism seen in the Asian markets aligns with the slightly positive sentiment in the US and European markets. While the JCI finished higher with support from cement and resource stocks, the bounce back in Wall Street was led by the NASDAQ. However, oil prices dropped due to concerns about energy demand and a stronger dollar. These factors will continue to shape the market outlook in the coming days.
Analyst comment
Positive news. The Indonesia stock market is expected to continue its gains after bouncing higher. Cautious optimism in Asian markets and positive performance in the US and European markets suggest a continuation of the upward trend. However, concerns about energy demand and a stronger dollar may impact the market.
