Axis Capital Group Finance
Win Streak May Continue For Indonesia Bourse
The global forecast for the Asian markets is positive, reflecting speculation about further stimulus from China. The European and U.S. markets finished higher and the Asian bourses are also expected to open in the green.
The JCI finished slightly higher again on Tuesday as gains from the financial shares and resource stocks were capped by weakness from the telecoms.
For the day, the index collected 11.50 points or 0.22 percent to finish at 5,175.79 after trading between 5,166.63 and 5,194.05. Volume was 7.17 billion shares worth 6.33 trillion rupiah. There were 156 gainers and 121 decliners, with 100 stocks finishing unchanged.
Among the actives, Astra Agro Lestari added 0.76 percent, while Aneka Tambang gained 0.51 percent, Bank Central Asia collected 0.96 percent, Bank Danamon Indonesia surged 2.02 percent, Bank Mandiri jumped 1.18 percent, Bumi Resources soared 4.88 percent, Energy Mega Persada climbed 2.00 percent and XL Axiata plummeted 4.31 percent.
The lead from Wall Street is firm as stocks moved higher on Tuesday as traders reacted to a number of positive catalysts. The gains partly offset the weakness in the previous session, with the Dow reaching a new record closing high.
The Dow climbed 102.75 points or 0.6 percent to 17,879.55, while the NASDAQ rose 28.46 points or 0.6 percent to 4,755.81 and the S&P 500 advanced 13.11 points or 0.6 percent to 2,066.55.
Traders were encouraged by reports that suggest the People's Bank of China may follow up last month's surprise interest rate cut with a reduction in banks' reserve requirements.
Positive sentiment was also generated by news on the merger-and-acquisition front. Chip makers Spansion (CODE) and Cypress Semiconductor (CY) posted standout gains on the day after announcing a $4 billion all-stock merger.
Shares of Avanir Pharmaceuticals (AVNR) also moved sharply higher after the biopharmaceutical company agreed to be acquired by Japan's Otsuka Pharmaceutical for $17 per share in cash or about $3.5 billion.
On the U.S. economic front, the Commerce Department reported a stronger than expected jump in construction spending in October.