Indonesia Stock Market Expected To Remain Rangebound

(RTTNews) - The Indonesia stock market has alternated between positive and negative finishes through the last four trading days since the end of the three-day winning streak in which it had surged almost 225 points or 3.3 percent. The Jakarta Composite Index now sits just above the 6,870-point plateau although it's expected to open lower again on Wednesday.

The global forecast for the Asian markets is negative, with weakness expected especially from the oil and technology stocks ahead of the FOMC rate decision later today. The European and U.S. markets were down and the Asian markets are predicted to follow that lead.

The JCI finished slightly higher on Tuesday following gains from the financial shares and resource stocks.

For the day, the index rose 13.13 points or 0.19 percent to finish at 6,871.54.

Among the actives, Bank Negara Indonesia advanced 0.99 percent, while Bank Mandiri rallied 2.89 percent, Bank Rakyat Indonesia collected 1.88 percent, Indosat Ooredoo tanked 3.44 percent, Indocement sank 0.81 percent, Semen Indonesia climbed 1.15 percent, Indofood Suskes lost 0.36 percent, United Tractors perked 0.08 percent, Astra International added 0.41 percent, Energi Mega Persada rallied 2.07 percent, Bakrie Sumatera Plantations soared 2.22 percent, Astra Agro Lestari fell 0.27 percent, Aneka Tambang jumped 1.99 percent, Vale Indonesia surged 2.24 percent, Timah strengthened 1.42 percent, Bumi Resources skyrocketed 15.05 percent and Bank Danamon Indonesia, Bank CIMB Niaga and Bank Central Asia were unchanged.

The lead from Wall Street is soft as the major averages opened lower on Tuesday and remained in the red throughout the day, ending near session lows.

The Dow tumbled 228.50 points or 0.71 percent to finish at 31,761.54, while the NASDAQ plunged 220.09 points or 1.87 percent to close at 11,562.57 and the S&P 500 dropped 45.79 points or 1.15 percent to end at 3,921.05.

The weakness on Wall Street also came as traders looked ahead to the Federal Reserve's monetary policy announcement later today. The Fed is widely expected to announce another 75 basis point rate hike as part of its efforts to combat elevated inflation.

In corporate news, Walmart came under pressure after lowering its guidance for the second quarter and full year due to pricing actions aimed to improve inventory levels. Auto giant General Motors (GM) also moved to the downside after reporting Q2 earnings that missed estimates.

In U.S. economic news, the Commerce Department said new home sales pulled back by more than expected in June. Also, the Conference Board said consumer confidence in the U.S. deteriorated by more than expected in of July.

Crude oil prices fell on Tuesday, weighed by an announcement from the Biden administration about more sales from the national oil reserve to fight inflation at the pump. The dollar's rebound from recent losses also contributed the drop in oil prices. West Texas Intermediate Crude oil futures for September ended lower by $1.72 or 1.8 percent at $94.98 a barrel.