After opening flat, the Indonesia Composite Index (ICI) touched an intra-day low of -19.5 points but regained the loss to close with a 25.2-point gain (+1.1%) to 2314.3. Selective buying was seen in mining and energy stocks such as INCO (+10.2%), TINS (+7.9%), BUMI (+5%) and PTBA (+5%). Total market transaction rose 15% to Rp4.4trillion. Foreign traders booked a Rp125b net sell with total market contribution of 24% (Tuesday: 30%), indicating local players are beginning to do some bargain hunting.

We predict the ICI could extend its gain today as long as energy and mining stocks are still going strong, boosted by the high oil price. The general sentiment remains mixed as the high oil price will raise inflation and interest rates. The heavy sell-off in government bonds could also affect the equity market if investors begin to take profit on their banking stocks especially those with huge position in government bonds such as BBCA. Support and resistance levels remain at 2,240 and 2,470 respectively.