The Indonesian stock market picked up less than a pair of points on Thursday - but that was enough to extend its winning streak to four sessions, gathering nearly 100 points or 2.7 percent in that span. The Jakarta Composite Index finished just below the 3,825-point plateau, and now analysts are suggesting that the market may have a bit more upside left in it at the opening of trade on Friday.
The global forecast for the Asian markets is conflicted, pitting optimism regarding the Greek debt crisis against pessimism regarding U.S. economic data. Crude oil stocks are expected to see considerable pressure, along with gold and property stocks - while airlines, technology, retail and telecom stocks are expected to rise. The European markets finished sharply lower and the U.S. bourses were mixed, and the Asian markets figure to follow the latter lead.
The JCI finished barely higher on Thursday, nudged into the green by gains from the pharmaceuticals and telecoms.
For the day, the index added 1.82 points or 0.05 percent to finish at 3,823.65 after trading between 3,801.70 and 3,829.63. Volume was 7.6 billion shares worth 3.9 trillion rupiah. There were 103 gainers and 103 decliners.
Among the gainers, Kimia Farma surged 24.4 percent, while Indofarma spiked 17.1 percent, Multistrada Arah Sarana added 1.9 percent and Tower Bersama Infrastructure collected 4.4 percent.
The lead from Wall Street provides little clarity as stocks staged a significant recovery in late-day trading on Thursday after a weak start, ending the session mixed. Reports about a deal on Greece's austerity plan helped to offset concerns about the economic outlook.
The early weakness on Wall Street was partly in reaction to the Federal Reserve's downwardly revised economic growth outlook, which was released late in the day on Wednesday. Indicating that the economic recovery is continuing at a somewhat slower than expected pace, the Fed downwardly revised its growth outlook for 2011 and 2012.
Additional selling pressure was generated by the release of a report from the Labor Department showing a notable increase in initial jobless claims in the week ended June 18.
Resource stocks helped to lead the way lower amid a sell-off in the commodities markets. The price of oil fell by more than $4 a barrel on news that the International Energy Agency plans to release 60 million barrels of oil onto the world market.
However, buying interest emerged later in the trading day after reports that Greece has won the consent of a group of inspectors from the European Union and International Monetary Fund regarding its new five-year austerity plan. The inspectors approved the plan after Greece committed to an additional round of tax rises and spending cuts. While the reported deal has generated some optimism about the outlook for the financial situation in Greece, the austerity measures still must be approved by the Greek parliament. Source: RRT News
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