Indonesia Stocks Predicted To Open Under Pressure On Thursday

(RTTNews) - The Indonesia stock market has closed lower in three straight sessions, slipping almost 100 points or 1.5 percent along the way. The Jakarta Composite Index now sits just above the 6,640-point plateau and it's expected to open lower again on Thursday.

The global forecast for the Asian markets is negative on concerns about the outlook for interest rates. The European and U.S. markets were down and the Asian markets are expected to open in similar fashion.

The JCI finished sharply lower on Wednesday following losses from the financial shares and resource stocks.

For the day, the index dropped 77.30 points or 1.15 percent to finish at 6,640.99.

Among the actives, Bank CIMB Niaga shed 0.50 percent, while Bank Negara Indonesia slumped 3.02 percent, Bank Central Asia sank 2.44 percent, Bank Mandiri surrendered 2.02 percent, Bank Rakyat Indonesia dropped 1.22 percent, Indosat Ooredoo tanked 2.31 percent, Indocement lost 0.55 percent, Indofood Suskes plunged 3.19 percent, United Tractors surged 5.01 percent, Astra International fell 4.51 percent, Energi Mega Persada cratered 3.39 percent, Bakrie Sumatera Plantations retreated 1.63 percent, Astra Agro Lestari tumbled 2.67 percent, Aneka Tambang skidded 1.15 percent, Vale Indonesia stumbled 2.43 percent, Timah declined 1.84 percent, Bumi Resources plummeted 5.06 percent and Bank Danamon Indonesia and Semen Indonesia were unchanged.

The lead from Wall Street is soft as the major averages opened lower on Wednesday, flirted with the unchanged line before finally ending with modest losses.

The Dow tumbled 208.54 points or 0.67 percent to finish at 30,772.79, while the NASDAQ eased 17.15 points or 0.15 percent to end at 11,247.58 and the S&P 500 fell 17.02 points or 0.45 percent to close at 3,801.78.

The early weakness on Wall Street came as a Labor Department report showing a bigger than expected increase in U.S. consumer prices added to concerns about the outlook for interest rates.

The bigger than expected jump in inflation has solidified expectations the Federal Reserve will raise interest rates by 75 basis points later this month and increases the likelihood of another 75-basis point rate hike in September.

Later in the day, the Fed released its Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, which noted U.S. economic activity has expanded at a modest pace since mid-May.

Crude oil prices shrugged off a surge in U.S. inflation and climbed higher on Wednesday, rebounding smartly after suffering a sharp loss in the previous session. West Texas Intermediate Crude oil futures for August ended higher by $0.46 at $96.30 a barrel.