Indonesia Stock Market Poised To End Losing Streak

(RTTNews) - The Indonesia stock market has moved lower in back-to-back sessions, slumping almost 90 points or 1.2 percent along the way. The Jakarta Composite Index now sits just above the 6,830-point plateau although it's likely to see support on Thursday.

The global forecast for the Asian markets is generally upbeat following the FOMC's rate decision. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.

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

For the day, the index lost 22.30 points or 0.33 percent to finish at 6,833.40.

Among the actives, Bank Mandiri plunged 3.27 percent, while Bank Danamon Indonesia sank 0.79 percent, Bank Negara Indonesia skidded 1.12 percent, Bank Central Asia shed 0.54 percent, Bank Rakyat Indonesia rose 0.23 percent, Indocement plummeted 4.13 percent, Semen Indonesia crashed 6.96 percent, Indofood Sukses Makmur rallied 1.22 percent, United Tractors gained 0.69 percent, Astra International added 0.23 percent and Vale Indonesia tanked 3.26 percent.

The lead from Wall Street is cautiously optimistic as the major averages opened higher on Wednesday, although the Dow couldn't hold its gains and slipped into the red.

The Dow shed 35.21 points or 0.09 percent to finish at 38,712.21, while the NASDAQ rallied 264.89 points or 1.53 percent to close at 17,608.44 and the S&P 500 gained 45.71 points or 0.85 percent to end at 5,421.03.

The early rally on Wall Street followed the release of a Labor Department report showing U.S. consumer prices were unexpectedly flat in May, which led to renewed optimism about the outlook for interest rates.

But later in the day, the Federal Reserve's monetary policy announcement revealed that officials now expect only one interest rate cut this year.

The Fed acknowledged modest further progress toward its inflation objective in recent months but said officials still need greater confidence that inflation is moving sustainably towards the target before they will consider lowering rates.

Oil prices climbed higher Wednesday on hopes of increased demand and tighter supply conditions later in the year, as well as a weak dollar. West Texas Intermediate Crude oil futures for July rose $0.60 at $78.50 a barrel.