Indonesia Shares May See Additional Support On Tuesday

(RTTNews) - The Indonesia stock market has moved higher in consecutive trading days, picking up more than 15 points or 0.2 percent along the way. The Jakarta Composite Index now rests just above the 6,890-point plateau and it's tipped to open in the green again on Tuesday.

The global forecast for the Asian markets is cautiously optimistic, with geopolitical concerns warring against optimism over the outlook for interest rates. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The JCI finished slightly higher on Monday as gains from the resource and energy stocks were offset by weakness from the financial sector.

For the day, the index rose 2.94 points or 0.04 percent to finish at 6,891.46.

Among the actives, Bank CIMB Niaga soared 3.05 percent, while Bank Mandiri tanked 2.07 percent, Bank Negara Indonesia tumbled 1.92 percent, Bank Central Asia collected 0.28 percent, Bank Rakyat Indonesia sank 0.97 percent, Indosat Ooredoo Hutchison spiked 2.94 percent, Indocement fell 0.25 percent, Semen Indonesia rallied 3.94 percent, Indofood Suskes lost 0.36 percent, United Tractors climbed 1.14 percent, Astra International advanced 0.82 percent, Energi Mega Persada skyrocketed 6.50 percent, Astra Agro Lestari perked 0.10 percent, Aneka Tambang surged 5.54 percent, Vale Indonesia accelerated 2.71 percent, Timah improved 3.90 percent, Bumi Resources jumped 4.03 percent and Bank Danamon Indonesia was unchanged.

The lead from Wall Street is positive as the major averages shook off early weakness on Monday, crossing the unchanged line midday and finishing firmly in the green.

The Dow jumped 197.07 points or 0.59 percent to finish at 33,604.65, while the NASDAQ climbed 52.90 points or 0.39 percent to close at 13,484.24 and the SP 500 added 27.16 points or 0.63 percent to end at 4,335.66.

The early weakness on Wall Street was the result of the violent clash between Israel and Hamas that started over the weekend.

However, the mood turned positive as worries about interest rates eased after Federal Reserve Vice Chair Philip Jefferson said the central bank needs to "proceed carefully to balance the risk of tightening too much."

But the mood in general was cautious with investors awaiting the inflation data later in the week. It could have a significant impact on the outlook for interest rates amid recent concerns the Federal Reserve will keep rates at an elevated level longer than previously anticipated.

Oil prices rose sharply on Monday amid concerns about disruptions to global oil supplies due to rising tensions in the Middle East. West Texas Intermediate Crude oil futures for November spiked $3.59 or 4.3 percent at $86.38 a barrel.