Indonesia Stock Market Has Strong Lead For Thursday

(RTTNews) - The Indonesia stock market on Wednesday snapped the seven-day winning streak in which it had advanced almost 150 points or 2.2 percent. The Jakarta Composite Index now sits just above the 7,085-point plateau although it's expected to move higher again on Thursday.

The global forecast for the Asian markets is upbeat thanks to easing inflation concerns. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.

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

For the day, the index dipped 16.64 points or 0.23 percent to finish at 7,086,24.

Among the actives, Bank CIMB Niaga shed 0.46 percent, while Bank Negara Indonesia collected 0.30 percent, Bank Mandiri strengthened 1.47 percent, Bank Rakyat Indonesia stumbled 2.27 percent, Indosat Ooredoo Hutchison rose 0.35 percent, Indocement gained 0.78 percent, Semen Indonesia added 0.72 percent, Indofood Suskes climbed 1.15 percent, United Tractors eased 0.08 percent, Astra International accelerated 1.48 percent, Energi Mega Persada slumped 2.13 percent, Astra Agro Lestari dropped 0.80 percent, Aneka Tambang tanked 2.75 percent, Vale Indonesia plunged 2.59 percent, Timah tumbled 1.61 percent, Bumi Resources plummeted 5.00 percent and Bank Central Asia and Bank Danamon Indonesia were unchanged.

The lead from Wall Street is broadly positive as the major averages opened firmly higher on Wednesday and stayed that way throughout the day, ending at three-month closing highs.

The Dow spiked 535.10 points or 1.63 percent to finish at 33,309.51, while the NASDAQ surged 360.88 points or 2.89 percent to end at 12,854.80 and the S&P 500 jumped 87.77 points or 2.13 percent to close at 4,210.24.

The rally on Wall Street came after the Labor Department released a report showing U.S. consumer prices unexpectedly came in flat in the month of July.

The tamer than expected inflation data has led to speculation that the Federal Reserve may slow the pace of interest rate hikes at its September meeting.

Crude oil prices climbed higher on Wednesday, lifted by data showing a bigger-than-expected drop in gasoline inventories in the U.S. last week. A weak dollar and increased demand for gasoline also contributed to the jump in oil prices. West Texas Intermediate Crude oil futures ended higher by $1.43 or 1.6 percent at $91.93 a barrel.