Indonesia Shares May Bounce Higher Again On Wednesday

(RTTNews) - The Indonesia stock market on Tuesday snapped the two-day winning streak in which it had gained more than 80 points or 1 percent. The Jakarta Composite Index sits just above the 8,060-point plateau although it's expected to rebound on Wednesday.

The global forecast for the Asian markets suggests mild upside as investors figure to wait and see is the U.S. government can avert a shutdown. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The JCI finished modestly lower on Tuesday following losses from the financial shares, resource stocks, telecoms and cement and food companies.

For the day, the index sank 62.18 points or 0.77 percent to finish at 8,061.06 after trading between 8,042.82 and 8,150.34.

Among the actives, Bank CIMB Niaga dipped 0.29 percent, while Bank Danamon Indonesia lost 0.83 percent, Bank Negara Indonesia sank 1.68 percent, Bank Central Asia dropped 1.93 percent, Bank Rakyat Indonesia contracted 2.01 percent, Indosat Ooredoo Hutchison declined 1.69 percent, Indocement tanked 2.61 percent, Semen Indonesia slumped 1.39 percent, Indofood Sukses Makmur plummeted 4.62 percent, United Tractors shed 0.56 percent, Energi Mega Persada tumbled 1.83 percent, Aneka Tambang plunged 4.24 percent, Vale Indonesia retreated 1.79 percent, Timah surged 4.22 percent, Bumi Resources stumbled 3.25 percent and Astra Agro Lestari, Astra International and Bank Mandiri were unchanged.

The lead from Wall Street is cautiously optimistic as the major averages spent all of Tuesday under water until the very end, when they crept up into positive territory.

The Dow climbed 81.82 points or 0.18 percent to finish at 46,397.89, while the NASDAQ added 68.86 points or 0.30 percent to end at 22,660.01 and the S&P 500 gained 27.25 points or 0.41 percent to close at 6,688.46.

The choppy trading for much of the day came as traders kept an eye on Washington, where lawmakers are struggling to reach an agreement to avert a government shutdown.

The late-day strength on Wall Street reflected hopes lawmakers will reach a last-minute agreement, as they often do, or optimism that a government shutdown will not have a major impact on the economy.

Meanwhile, traders largely shrugged off a Conference Board report showing a bigger than expected decrease by its reading on U.S. consumer confidence in the month of September.

Crude oil declined sharply on Tuesday, extending recent losses as excess supply concerns continue to linger due to the anticipated production increase by OPEC. West Texas Intermediate crude for November delivery was down $1.08 or 1.70 percent at $62.37 per barrel.

Closer to home, Indonesia will release August trade data and September inflation figures later today. In July, imports were down 5.86 percent on year and exports rose an annual 9.86 percent for a trade surplus of $4.18 billion. In August, overall inflation was down 0.08 percent on month and up 2.31 percent on year, while core CPI rose an annual 2.17 percent.