Indonesia Stock Market To Remain Rangebound On Tuesday

(RTTNews) - The Indonesia stock market has moved higher in two of three trading days since the end of the two-day slide in which it had given up more than 120 points or 1.9 percent. The Jakarta Composite Index now rests just above the 6,525-point plateau although it may move back to the downside again on Tuesday.

The global forecast for the Asian markets is soft on renewed concerns over the conflict in the Middle East and the corresponding jump in crude oil prices. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The JCI finished slightly higher on Monday as gains from the transportation, telecom and manufacturing companies were limited by weakness from the financials and resource stocks.

For the day, the index rose 7.36 points or 0.11 percent to finish at 6,525.48 after trading between 6,476.17 and 6,528.10.

The lead from Wall Street is weak as the major averages opened firmly lower on Monday and stayed that way throughout the session.

The Dow dropped 374.09 points or 0.70 percent to finish at 53,185.90, while the NASDAQ sank 31.54 points or 0.12 percent to close at 26,370.89 and the S&P 500 lost 25.62 points or 0.33 percent to end at 7,686.14.

The weakness on Wall Street came on concerns about a re-escalation of the military conflict in the Middle East following a period of relative calm, contributing to a jump in crude oil prices.

Crude oil prices jumped on Monday as the U.S. recommenced attacks on Iran, stoking concerns of a broader re-escalation in the gulf. West Texas Intermediate crude for October delivery was up $2.24 or 2.69 percent at $85.64 per barrel.

The sharp increase in crude oil prices contributed to renewed worries about the outlook for inflation ahead of this month's Federal Reserve meeting. Treasury yields then moved higher on the day, with the yield on the benchmark ten-year note reaching its highest levels in over a year.

Closer to home, Indonesia will provide July trade data and August inflation figures later today. Imports are expected to jump 24.10 percent on year, slowing from 34.27 percent in June. Exports are called higher by an annual 4.50 percent, down from 8.84 percent in the previous month. The trade deficit is pegged at $0.60 billion following the 0.45 billion shortfall a month earlier. In July, overall inflation was down 0.14 percent on month and up 2.88 percent on year and core CPI rose an annual 2.76 percent.