Indonesia Bourse May Give Up Support At 7,100 Points

(RTTNews) - The Indonesia stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day slide in which it had stumbled more than 130 points or 1.9 percent. The Jakarta Composite Index now sits just above the 7,140-point plateau and it's expected to open in the red again on Thursday.

The global forecast for the Asian markets is negative on concerns over treasury yields and the outlook for interest rates. The European and U.S. markets were down and the Asian markets are expected to follow suit.

The JCI finished sharply lower on Wednesday following losses from the financial shares and cement companies, while the resource stocks were mixed.

For the day, the index retreated 113.40 points or 1.56 percent to finish at 7,140.23 after trading between 7,127.21 and 7,282.00.

Among the actives, Bank CIMB Niaga surrendered 2.73 percent, while Bank Mandiri tanked 2.52 percent, Bank Danamon Indonesia sank 0.76 percent, Bank Negara Indonesia plunged 3.82 percent, Bank Central Asia retreated 1.61 percent, Bank Rakyat Indonesia tumbled 2.65 percent, Indosat Ooredoo Hutchison shed 0.71 percent, Indocement stumbled 1.87 percent, Semen Indonesia fell 0.53 percent, United Tractors rose 0.22 percent, Astra International skidded 1.11 percent, Energi Mega Persada slumped 1.10 percent, Astra Agro Lestari dropped 0.82 percent, Aneka Tambang added 0.66 percent, Vale Indonesia jumped 1.96 percent, Timah weakened 1.08 percent and Bumi Resources and Indofood Sukses Makmur were unchanged.

The lead from Wall Street is soft as the major averages opened firmly lower on Wednesday and remained in the red throughout the trading day.

The Dow plunged 411.32 points or 1.06 percent to finish at 38,441.54, while the NASDAQ slumped 99.30 points or 0.58 percent to close ta 16,920.58 and the S&P 500 sank 39.09 points or 0.74 percent to end at 5,266.95.

The weakness on Wall Street came amid a continued increase by treasury yields, with the yield on the benchmark ten-year note climbing to its highest levels in nearly a month.

The continued advance by treasury yields has added to recent concerns about the outlook for interest rates ahead of key inflation data later in the week.

Crude oil prices fell on Wednesday on concerns about the outlook for interest rates, and the likely adverse impact high borrowing costs will have on energy demand. West Texas Intermediate Crude oil futures for July sank $0.60 at $79.23 a barrel.