Higher Open Anticipated For Indonesia Stock Market

(RTTNews) - The Indonesia stock market on Wednesday ended the three-day winning streak in which it had gathered more than 80 points or 1.2 percent. The Jakarta Composite Index now rests just above the 7,185-point plateau although it's expected to bounce higher again on Thursday.

The global forecast for the Asian markets is upbeat on bargain hunting and easing concerns over the outlook for interest rates. The European markets were mixed and the U.S. bourses were sharply higher and the Asian markets figure to split the difference.

The JCI finished modestly lower on Wednesday following losses from the resource stocks and a mixed picture from the financial shares.

For the day, the index dropped 46.40 points or 0.64 percent to finish at 7,186.76.

Among the actives, Bank Danamon Indonesia shed 0.72 percent, while Bank CIMB Niaga retreated 1.74 percent, Bank Negara Indonesia stumbled 2.00 percent, Bank Central Asia climbed 1.21 percent, Bank Mandiri collected 0.57 percent, Bank Rakyat Indonesia surrendered 2.19 percent, Indosat Ooredoo Hutchison tanked 3.47 percent, Indocement advanced 1.06 percent, Semen Indonesia rose 0.38 percent, Indofood Suskes lost 0.79 percent, United Tractors declined 1.20 percent, Astra International plunged 3.62 percent, Energi Mega Persada surged 3.52 percent, Astra Agro Lestari dropped 0.83 percent, Aneka Tambang tumbled 2.01 percent, Vale Indonesia sank 0.81 percent, Timah slumped 1.63 percent and Bumi Resources plummeted 3.70 percent.

The lead from Wall Street is broadly positive as the major averages opened slightly higher on Wednesday but accelerated as the day progressed, ending near session highs.

The Dow surged 435.98 points or 1.40 percent to finish at 31,581.28, while the NASDAQ rallied 246.99 points or 2.14 percent to end at 11,791.90 and the S&P 500 jumped 71.68 points or 1.83 percent to close at 3,979.87.

The rally on Wall Street came as traders looked to pick up stocks at reduced levels following recent weakness, which dragged the major averages down to their lowest levels in over a month; traders may now feel that interest rate concerns have been priced into the markets.

The rebound also came amid a pullback by treasury yields, with the yield on the benchmark ten-year note receding after reaching a nearly three-month high on Tuesday.

Stocks saw further upside following the release of the Federal Reserve's Beige Book, which said economic activity in the U.S. has been essentially unchanged since early July. Also, the Commerce Department said the U.S. trade deficit narrowed significantly in July.

Crude oil prices fell sharply on Wednesday on concerns about the outlook for energy demand amid rising fears of a global recession. West Texas Intermediate Crude oil futures for October ended lower by $4.94 or 5.7 percent at $81.94 a barrel, the lowest settlement since January 11.