Indonesia Bourse May Extend Wednesday's Losses

(RTTNews) - The Indonesia stock market on Wednesday ended the two-day winning streak in which it had picked up more than 95 points or 1.3 percent. The Jakarta Composite Index now rests just above the 6,800-point plateau and it may take further damage on Thursday.

The global forecast for the Asian markets is soft on renewed concerns over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The JCI finished slightly lower on Wednesday as losses from the cement and food stocks were mitigated by support from the resource companies and a mixed picture from the financial sector.

For the day, the index dipped 8.57 points or 0.13 percent to finish at 6,801.75.

Among the actives, Bank CIMB Niaga advanced 0.82 percent, while Bank Negara Indonesia retreated 1.30 percent, Bank Central Asia sank 0.86 percent, Bank Mandiri collected 0.51 percent, Bank Rakyat Indonesia was up 0.20 percent, Indosat Ooredoo Hutchison tumbled 1.82 percent, Indocement fell 0.25 percent, Indofood Suskes rose 0.36 percent, United Tractors perked 0.09 percent, Energi Mega Persada surged 5.48 percent, Aneka Tambang added 0.52 percent, Vale Indonesia strengthened 1.38 percent, Timah gained 0.85 percent and Bumi Resources, Astra International, Bank Danamon Indonesia, Astra Agro Lestari and Semen Indonesia were unchanged.

The lead from Wall Street ends up negative as the major averages opened higher on Wednesday and stayed that way before tumbling after the Federal Reserve's monetary policy announcement.

The Dow dropped 142.29 points or 0.42 percent to finish at 33,966.35, while the NASDAQ sank 85.93 points or 0.76 percent to close at 11,170.89 and the S&P 500 lost 24.33 points or 0.61 percent to end at 3,995.32.

The lower close on Wall Street came after the Fed announced its widely expected decision to slow the pace of interest rate increases but still signaled further rate hikes ahead.

After raising interest rates by 75 basis points at four consecutive meetings, the Fed announced its decision to raise interest rates by 50 basis points to a target range of 4.25 to 4.50 percent.

But the central bank reiterated that it anticipates ongoing increases in rates will be appropriate. The economic projections provided along with the announcement now suggest the Fed expects rates to be raised higher than forecast in September.

Crude oil prices climbed higher on Wednesday, lifted by an upward revision in demand forecast by the International Energy Agency due to the shutdown of the Keystone pipeline following a massive leak. West Texas Intermediate Crude oil futures for January ended higher by $1.89 or 2.5 percent at $77.28 a barrel.

Closer to home, Indonesia will provide November figures for imports, exports and trade balance later today. Imports are expected to rise 7.0 percent on year, down from 17.44 percent in October. Exports are seen higher by an annual 9.5 percent, easing from 12.3 percent a month earlier. The trade surplus is pegged at $4.26 billion, down from $5.67 billion a month earlier.