Indonesia Stock Market Predicted To Open In The Red

(RTTNews) - The Indonesia stock market has finished higher in three consecutive sessions, gathering more than 80 points or 1.2 percent along the way. The Jakarta Composite Index now rests just above the 7,130-point plateau although it's expected to open under pressure on Wednesday.

The global forecast for the Asian markets is mixed to lower on inflation and interest rate concerns. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The JCI finished barely higher on Tuesday following gains from the resource stocks and a mixed picture from the financial sector.

For the day, the index picked up 1.27 points or 0.02 percent to finish at 7,233.15.

Among the actives, Bank Danamon Indonesia surged 4.10 percent, while Bank CIMB Niaga jumped 1.77 percent, Bank Negara Indonesia skidded 1.13 percent, Bank Mandiri retreated 1.40 percent, Bank Rakyat Indonesia sank 0.65 percent, Indosat Ooredoo Hutchison strengthened 1.41 percent, Indofood Suskes lost 0.39 percent, United Tractors soared 3.35 percent, Astra International rose 0.36 percent, Energi Mega Persada rallied 3.65 percent, Astra Agro Lestari added 0.55 percent, Aneka Tambang climbed 1.02 percent, Vale Indonesia spiked 3.78 percent, Timah advanced 1.32 percent, Bumi Resources skyrocketed 9.64 percent and Bank Central Asia, Indocement and Semen Indonesia were unchanged.

The lead from Wall Street is negative as the major averages quickly moved lower on Tuesday, rebounded midday but then faced renewed consolidation that lasted throughout the rest of the session.

The choppy trading on Wall Street came as traders expressed some uncertainty about the near-term outlook for the markets following recent weakness.

The volatility on the day also came amid a surge in treasury yields, with the yield on the benchmark ten-year note jumping to its highest levels in almost three months.

Potentially adding to the worries about interest rates, the Institute for Supply Management said service sector activity in the U.S. unexpectedly grew at a slightly faster rate in August. The report is a positive sign for the economy but may have led to concerns the Federal Reserve will see the data as an indication that it can continue to aggressively raise interest rates.

Oil futures settled barely higher on Tuesday after the decision by OPEC+ to cut output by 100,000 barrels per day in October, although the dollar's uptick limited oil's upside. West Texas Intermediate Crude oil futures for October ended higher by a penny or $0.09% at $86.88 a barrel.