Indonesia Bourse Expected To Halt Its Slide On Tuesday

(RTTNews) - The Indonesia stock market has moved lower in two straight sessions, sinking almost 120 points or 1.8 percent in that span. The Jakarta Composite Index now rests just above the 7,765-point plateau although it may stop the bleeding on Tuesday. The global forecast for the Asian markets is upbeat on optimism over the outlook for interest rates. The European and U.S. markets were modestly higher and the Asian bourses are expected to follow that lead. The JCI finished sharply lower on Monday following losses from the finance, food and telecom stocks, while the resource companies were mixed. For the day, the index tumbled 100.50 points or 1.28 percent to finish at 7,766.85 after trading between 7,766.85 and 7,934.99. Among the actives, Bank CIMB Niaga dipped 0.29 percent, while Bank Mandiri tanked 4.06 percent, Bank Danamon Indonesia skidded 1.18 percent, Bank Negara Indonesia stumbled 4.35 percent, Bank Central Asia surrendered 3.75 percent, Bank Rakyat Indonesia retreated 2.50 percent, Indosat Ooredoo Hutchison declined 2.04 percent, Indofood Sukses Makmur slumped 1.33 percent, United Tractors surged 4.34 percent, Astra International tumbled 1.36 percent, Energi Mega Persada dropped 2.50 percent, Astra Agro Lestari shed 0.68 percent, Aneka Tambang soared 6.49 percent, Vale Indonesia eased 0.26 percent, Timah rallied 5.83 percent, Bumi Resources sank 3.57 percent and Indocement and Semen Indonesia were unchanged.

The lead from Wall Street is cautiously optimistic as the major averages opened mixed on Monday but all finished with modest gains.

The Dow climbed 114.09 points or 0.25 percent to finish at 45,514.95, while the NASDAQ advanced98.31 points or 0.45 percent to close at 21,798.70 and the S&P 500 rose 13.65 points or 0.21 percent to end at 6,495.15.

The strength on Wall Street reflected optimism about the outlook for interest rates following last Friday's weaker-than-expected U.S. employment data.

Following the release of a closely watched report showing employment increased by much less than expected in the month of August, CME Group's FedWatch Tool is currently indicating a 90.2 percent chance the Fed will lower rates by a quarter point later this month.

Overall trading activity was subdued, however, as traders looked ahead to the release of consumer and producer price inflation later this week, which could also impact the outlook for rates.

Crude oil moved higher Monday on the threat of sanctions hanging over Russia on its oil exports, although the upside was limited by OPEC's decision Sunday to increase output. West Texas Intermediate crude for October delivery was up $0.53 or 0.86 percent at $62.40 per barrel.