Higher Open Anticipated For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved lower in four straight sessions, sinking more than 130 points 2 percent along the way. The Jakarta Composite Index now rests just above the 7,075-point plateau although it may halt its slide on Thursday.

The global forecast for the Asian markets is upbeat following news of bond market intervention from the Bank of England. The European and U.S. markets were up and the oversold Asian bourses figure to follow suit.

The JCI finished modestly lower on Wednesday following losses from the resource and cement stocks, while the financials came in mixed.

For the day, the index slipped 35.42 points or 0.50 percent to finish at 7,077.03.

Among the actives, Bank Danamon Indonesia rose 0.38 percent, while Bank CIMB Niaga dropped 0.91 percent, Bank Central Asia collected 0.30 percent, Bank Mandiri shed 0.53 percent, Bank Rakyat Indonesia eased 0.22 percent, Indosat Ooredoo Hutchison surrendered 2.01 percent, Indocement lost 0.51 percent, Semen Indonesia retreated 1.33 percent, Indofood Suskes sank 0.81 percent, United Tractors slumped 1.20 percent, Astra International tanked 2.16 percent, Energi Mega Persada lost 0.76 percent, Astra Agro Lestari declined 1.71 percent, Aneka Tambang tumbled 2.04 percent, Vale Indonesia plunged 4.94 percent, Timah stumbled 2.19 percent, Bumi Resources plummeted 5.71 percent and Bank Negara Indonesia was unchanged.

The lead from Wall Street is broadly positive as the major averages opened mixed on Wednesday but accelerated shortly thereafter to finish solidly in the green.

The Dow surged 548.75 points or 1.88 percent to finish at 29,683.74, while the NASDAQ soared 222.13 points or 2.05 percent to end at 11,051.64 and the S&P 500 jumped 71.75 points or 1.97 percent to close at 3,719.04.

The rally on Wall Street reflected a positive reaction to the Bank of England's plans to begin temporarily purchasing long-dated U.K. government bonds to address dysfunction in the gilt market. In addition, the BoE postponed the selling of bonds held under the quantitative easing program to October 31.

Long-term U.K. bond yields have pulled back following the news, while U.S. treasury yields also moved sharply lower after surging in recent sessions. The yield on the benchmark 10-year note showed a steep drop after briefly topping 4.0 percent for the first time in over 12 years.

Stocks also benefited from a significant pullback by the U.S. dollar, with the U.S. dollar index tumbling by 1.2 percent. The greenback had recently reached new 20-year highs.

Crude oil prices rose sharply Wednesday after data showed a dip in U.S. crude inventories last week, and the dollar's sharp drop also contributed to the jump in oil prices. West Texas Intermediate Crude oil futures for November ended higher by $3.65 or 4.7 percent at $82.15 a barrel.