Market Roundup and Outlook February 23, 2012
Asian stock markets eked out modest gains amid concern that oil near a nine-month high will crimp economic growth. Asian investors took the strength in oil as an invitation to buy into the energy sector.
Also helping markets recover was the HSBC flash purchasing managers index which showed factory activity in China hit a four-month-high at 49.7 in February but remained slightly in contractionary territory.
The flash PMI reading means that next week?s main PMI number is likely to be around the 50 level that separates expansion from contraction. That means the door is still open for China to undertake more policy-easing moves to support growth.
The Jakarta Composite Index (JCI) ended lower 7.9 points (-0.20%) to close at 3995. The Blue Chip index LQ-45 was down 2.4 points (0.35%) to 694. Foreign investor booked IDR 48.7 billions in Net Sell with ASRI, CFIN, BBCA, BULL and BUMI as the most active stocks sold.
European stock markets dropped as a gauge of business activity in the euro zone unexpectedly signalled contraction in February and Fitch downgraded Greece?s credit rating.
The preliminary Markit purchasing-managers index showed a surprise contraction in private-sector activity in the euro zone by falling to 49.7 in February from 50.4 in January. A flash estimate for the Germany composite output index signaled expansion, although at a slower pace than the seven-month high reached in January.
Fitch Ratings cut Greece?s credit rating to C from CCC and reiterated that a bond-swap agreement with private creditors would be a restricted default.
U.S. stocks retreated after a three-session winning run, with equities taking a break from an advance that sent the S&P 500 Index up 8% this year. Some investors worried about the details of a bailout deal reached for Greece this week.
But analysts said investors were mostly in a holding pattern after seeing the market (i.e DJIA) briefly passed 13,000, an important psychological mark, for the first time since May 2008.
Asian stock markets traded lower this morning, with Japanese banks under pressure and Australia seeing some earnings-related selling, while many Korean blue-chip exporters suffered sharp drops prompted by concerns about the global economy.
The escalating Iranian nuclear row, which has helped push up oil prices 11% this year, also returned to the radar for global investors.
Political uncertainty also weighed on the Sydney market, as Prime Minister Julia Gillard said Thursday morning she would hold a vote for leadership of the ruling party and government next Monday.
The Jakarta Composite Index (JCI) today would likely to extend its downward movement but still move within the 3950 - 4022 trading range.
Also helping markets recover was the HSBC flash purchasing managers index which showed factory activity in China hit a four-month-high at 49.7 in February but remained slightly in contractionary territory.
The flash PMI reading means that next week?s main PMI number is likely to be around the 50 level that separates expansion from contraction. That means the door is still open for China to undertake more policy-easing moves to support growth.
The Jakarta Composite Index (JCI) ended lower 7.9 points (-0.20%) to close at 3995. The Blue Chip index LQ-45 was down 2.4 points (0.35%) to 694. Foreign investor booked IDR 48.7 billions in Net Sell with ASRI, CFIN, BBCA, BULL and BUMI as the most active stocks sold.
European stock markets dropped as a gauge of business activity in the euro zone unexpectedly signalled contraction in February and Fitch downgraded Greece?s credit rating.
The preliminary Markit purchasing-managers index showed a surprise contraction in private-sector activity in the euro zone by falling to 49.7 in February from 50.4 in January. A flash estimate for the Germany composite output index signaled expansion, although at a slower pace than the seven-month high reached in January.
Fitch Ratings cut Greece?s credit rating to C from CCC and reiterated that a bond-swap agreement with private creditors would be a restricted default.
U.S. stocks retreated after a three-session winning run, with equities taking a break from an advance that sent the S&P 500 Index up 8% this year. Some investors worried about the details of a bailout deal reached for Greece this week.
But analysts said investors were mostly in a holding pattern after seeing the market (i.e DJIA) briefly passed 13,000, an important psychological mark, for the first time since May 2008.
Asian stock markets traded lower this morning, with Japanese banks under pressure and Australia seeing some earnings-related selling, while many Korean blue-chip exporters suffered sharp drops prompted by concerns about the global economy.
The escalating Iranian nuclear row, which has helped push up oil prices 11% this year, also returned to the radar for global investors.
Political uncertainty also weighed on the Sydney market, as Prime Minister Julia Gillard said Thursday morning she would hold a vote for leadership of the ruling party and government next Monday.
The Jakarta Composite Index (JCI) today would likely to extend its downward movement but still move within the 3950 - 4022 trading range.
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