Indonesia Bourse Expected To Remain Rangebound

(RTTNews) - The Indonesia stock market bounced higher again on Wednesday, one day after ending the three-day winning streak in which it had picked up more than 160 points or 2.6 percent. The Jakarta Composite Index now rests just above the 6,905-point plateau although it may head south again on Thursday.

The global forecast for the Asian markets is mixed and flat ahead of key economic data in the coming days. The European markets were slightly lower and the U.S. bourses saw mild gains and the Asian markets figure to split the difference.

The JCI finished modestly higher on Wednesday following gains from the resource stocks, weakness from the cement companies and a mixed picture from the financial sector.

For the day, the index gained 22.94 points or 0.33 percent to finish at 6,905.64 after trading between 6,885.40 and 6,936.26.

Among the actives, Bank CIMB Niaga rose 0.29 percent, while Bank Mandiri retreated 1.27 percent, Bank Danamon Indonesia collected 0.40 percent, Bank Negara declined 1.34 percent, Bank Rakyat Indonesia slid 0.23 percent, Bank Central Asia climbed 1.04 percent, Indosat Ooredoo Hutchison improved 0.72 percent, Indocement Tunggal shed 0.35 percent, Indofood Sukses Makmur sank 0.84 percent, Semen Indonesia and Aneka Tambang both dropped 0.82 percent, United Tractors increased 0.58 percent, Astra International gained 0.45 percent, Energy Mega Persada rallied 2.69 percent, Bumi Resources jumped 1.30 percent, Vale Indonesia added 0.50 percent, Timah surged 3.57 percent and Astra Agro Lestari lost 0.47 percent.

The lead from Wall Street is cautiously optimistic as the major averages opened lower on Wednesday and spent most of the day hugging the line before a late push nudged them into the green.

The Dow rose 15.64 points or 0.04 percent to finish at 39,127.80, while the NASDAQ gained 87.50 points or 0.49 percent to close at 17,805.16 and the S&P 500 added 8.50 points or 0.16 percent to end at 5,477.90.

The uncertainty on Wall Street came as investors braced for the release of key U.S. inflation data later this week for clues on the outlook for interest rates.

Bank stocks were in focus ahead of the central bank's annual stress test, while shares of energy firms struggled a bit due to sluggish oil prices.

In economic news, the Commerce Department said new home sales in the U.S. saw a substantial decrease in the month of May, while building permits also slumped.

Crude oil futures fell on Wednesday after data showed a notable increase in crude inventories in the U.S. last week but recovered and eventually ended the day's session slightly higher. West Texas Intermediate Crude oil futures for August rose $0.07 at $80.90 a barrel.