Higher Open Called For Indonesia Stock Market

(RTTNews) - The Indonesia stock market on Tuesday wrote a finish to the three-day winning streak in which it had advanced more than 85 points or 1.2 percent. The Jakarta Composite Index now sits just above the 7,050-point plateau, although it's expected to find renewed support on Wednesday.

The global forecast for the Asian markets is upbeat on continued optimism over the outlook for interest rates. The European and U.S. markets finished higher and the Asian bourses are expected to open in similar fashion.

The JCI finished modestly lower on Tuesday following losses from the cement and food stocks, while the financials and resource companies were mixed.

For the day, the index dropped 52.27 points or 0.74 percent to finish at 7,050.13.

Among the actives, Bank Danamon Indonesia soared 3.33 percent, while Bank CIMB Niaga surged 4.85 percent, Bank Negara Indonesia eased 0.27 percent, Bank Central Asia skidded 1.13 percent, Bank Mandiri dropped 0.98 percent, Bank Rakyat Indonesia retreated 1.49 percent, Indosat Ooredoo Hutchison tumbled 1.84 percent, Indocement tanked 2.61 percent, Semen Indonesia plunged 3.64 percent, Indofood Suskes lost 0.38 percent, United Tractors fell 0.32 percent, Astra International added 0.38 percent, Astra Agro Lestari jumped 1.73 percent, Aneka Tambang sank 0.75 percent, Vale Indonesia slumped 1.75 percent, Timah shed 0.71 percent, Bumi Resources rallied 3.93 percent and Jasa Marga and Energi Mega Persada were unchanged.

The lead from Wall Street is positive as the major averages accelerated Tuesday morning, faded in the afternoon but steadied going into the close.

The Dow surged 333.83 points or 1.02 percent to finish at 33,160.83, while the NASDAQ advanced 51.68 points or 0.49 percent to end at 10,616.20 and the S&P 500 gained 21.31 points or 0.56 percent to close at 3,828.11.

The higher close on Wall Street reflected recent upward momentum, with the major averages adding to the strong gains posted Monday and last Friday to further offset last week's pullback.

The continued strength also came as traders awaited the outcome of Tuesday's U.S. midterm elections, which will determine control of Congress.

The early afternoon pullback by stocks coincided with a steep drop by Bitcoin and other cryptocurrencies, which followed news Binance, the world's largest cryptocurrency exchange, reached a deal to buy competitor FTX.

Crude oil prices drifted lower on Tuesday as reports showing a surge in COVID-19 cases in China raised concerns about the outlook for energy demand. West Texas Intermediate Crude oil futures for December ended lower by $2.88 or 3.1 percent at $88.91 a barrel.

Closer to home, Indonesia will provide September data for retail sales later today; in August, sales were up 4.9 percent on year.