Indonesia Bourse Likely To Remain Rangebound

(RTTNews) - The Indonesia stock market has alternated between positive and negative finishes through the last five trading days since the end of the two-day losing streak in which it had fallen more than 60 points or 1 percent. The Jakarta Composite Index now sits just beneath the 6,720-point plateau although it's likely to head south again on Thursday.

The global forecast for the Asian markets is negative on pessimism over the outlook for interest rates. 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 cement and resource stocks, while the financials came in mixed.

For the day, the index picked up 37.22 points or 0.56 percent to finish at 6,718.98.

Among the actives, Bank CIMB Niaga shed 0.31 percent, while Bank Mandiri collected 0.48 percent, Bank Danamon Indonesia added 0.65 percent, Bank Negara Indonesia improved 0.55 percent, Indocement rallied 1.30 percent, Semen Indonesia jumped 1.65 percent, Indofood Suskes gained 0.68 percent, United Tractors soared 2.60 percent, Energi Mega Persada advanced 0.94 percent, Astra Agro Lestari rose 0.33 percent, Aneka Tambang improved 0.76 percent, Vale Indonesia climbed 1.20 percent, Timah spiked 2.75 percent, Bumi Resources surged 3.45 percent and Astra International, Bank Central Asia, Indosat Ooredoo Hutchison and Bank Rakyat Indonesia were unchanged.

The lead from Wall Street is weak as the major averages opened lower on Wednesday and largely spent the day in the red, ending near session lows.

The Dow dropped 129.83 points or 0.38 percent to finish at 34,288.64, while the NASDAQ sank 25.12 points or 0.18 percent to close at 13,791.65 and the S&P 500 fell 8.77 points or 0.20 percent to end at 4,446.82.

The selling pressure came ahead of, and in response to, the latest batch of FOMC minutes which suggested a more hawkish tone for the outlook on interest rates than had been hoped.

The minutes also showed the members disagreed on rate hikes. After the June meeting, all but two of the 18 participants expected that at least one hike would be appropriate this year, and 12 expected two or more hikes.

In economic news, the Commerce Department released a report showing new orders for U.S. manufactured goods increased by much less than expected in May.

Crude oil futures settled sharply higher on Wednesday, buoyed by government data showing a significant jump in U.S. crude shipments last week. West Texas Intermediate Crude oil futures for August ended higher by $2.00 or 2.9 percent at $71.79 a barrel.