IHSG Opens Higher as Asian Markets Rally and Wall Street Ends Mixed

The Jakarta Composite Index (IHSG) opened 28 points, or 0.45 percent, higher at 6,379 on Thursday’s trading session. Head of Retail Research Analyst Fanny Suherman predicted the IHSG would move sideways during the day. “The IHSG has the potential to move sideways today,” she stated in her daily research note. Asian stock markets strengthened on Wednesday, as improved sentiment towards technology stocks following a solid earnings season pushed Wall Street indices to record highs. Meanwhile, oil prices weakened amid hopes for progress in negotiations to reopen shipping lanes in the Strait of Hormuz. Japan’s Nikkei index surged 3.7 percent and the Topix jumped 2.1 percent. In South Korea, the Kospi index rose 3.8 percent, and the Kosdaq gained 2.4 percent. Hong Kong’s Hang Seng added 0.24 percent, Taiwan’s Taiex climbed 2.9 percent, and Australia’s ASX 200 increased by 0.9 percent. On the other hand, the FTSE Straits Times weakened 0.55 percent, while the FTSE Malay KLCI strengthened 0.9 percent. “Support for the IHSG is at the 6,300-6,320 level, while resistance is in the 6,380-6,420 range,” Fanny added. The Dow Jones Industrial Average closed at a record high on Wednesday, buoyed by optimism over progress in US-Iran peace talks. In contrast, the Nasdaq declined following corrections in SpaceX and Advanced Micro Devices (AMD) shares after their financial reports were released. The Dow Jones rose 0.49 percent, while the S&P 500 fell 0.17 percent and the Nasdaq Composite dropped 0.83 percent. Market sentiment was supported by news of progress in Middle East peace negotiations. A senior Iranian source and two regional officials told Reuters that a proposed agreement between Iran and Oman would give Tehran authority over ships entering the Persian Gulf through the Strait of Hormuz. The deal is considered one of the largest concessions ever granted to Iran.