Indonesia Bourse Due For Consolidation On Thursday

(RTTNews) - The Indonesia stock market has moved higher in three straight sessions, advancing more than 70 points or 1 percent along the way. The Jakarta Composite Index now sits just above the 7,200-point plateau although it may see profit taking on Thursday.

The global forecast for the Asian markets suggests consolidation on a deteriorating outlook for interest rate cuts. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.

The JCI finished modestly higher on Wednesday following gains from the financial shares and mixed performances from the cement and resource companies.

For the day, the index added 15.73 points or 0.22 percent to finish at 7,207.94 after trading between 7,192.64 and 7,247.52.

Among the actives, Bank CIMB Niaga collected 0.57 percent, while Bank Negara Indonesia jumped 1.77 percent, Bank Central Asia skidded 1.04 percent, Bank Rakyat Indonesia improved 1.33 percent, Indosat Ooredoo Hutchison rallied 1.32 percent, Indocement shed 0.55 percent, Semen Indonesia rose 0.40 percent, Indofood Suskes fell 0.39 percent, United Tractors gained 0.44 percent, Astra International added 0.49 percent, Energi Mega Persada skidded 0.97 percent, Aneka Tambang dropped 0.96 percent, Vale Indonesia lost 0.55 percent, Bumi Resources soared 3.41 percent, Perusahaan Gas Negara surged 4.48 percent and Bank Mandiri, Bank Danamon Indonesia, Astra Agro Lestari and Timah were unchanged.

The lead from Wall Street is broadly negative as the major averages opened slightly lower but accelerated to the downside after the Federal Reserve's rate decision and statement.

The Dow stumbled 317.01 points or 0.82 percent to finish at 38,150.30, while the NASDAQ plummeted 345.88 points or 2.23 percent to close at 15,164.01 and the S&P 500 slumped 79.32 points or 1.61 percent to end at 4,845.65.

In the Fed's highly anticipated monetary policy announcement, it maintained the target range for the federal funds rate at 5.25 to 5.50 percent to support maximum employment and inflation at the rate of 2 percent.

However, the Fed also said it does not expect it will be appropriate to lower rates until it has gained greater confidence that inflation is moving sustainably toward 2 percent - triggering a wave of selling in the markets.

In U.S. economic news, payroll processor ADP said private sector job growth in the U.S. slowed more than expected in January.

Oil prices slumped Wednesday, weighed down by data showing an unexpected jump in U.S. crude inventories last week, and concerns about the outlook for demand after data showed another contraction in Chinese manufacturing activity. West Texas Intermediate Crude oil futures for March fell $1.97 or 2.5 percent at $75.85 a barrel.