Overbought Indonesia Bourse Nonetheless Called Higher

(RTTNews) - The Indonesia stock market has moved higher in four straight sessions, collecting more than 250 points or 3.7 percent along the way. The Jakarta Composite Index now rests just beneath the 7,140-point plateau and it's tipped to open in the green again on Tuesday. The global forecast for the Asian markets suggests little movement ahead of key U.S. employment data later this week. The European and U.S. markets finished slightly higher and the Asian markets figure to follow suit.

The JCI finishes sharply higher on Monday following gains from the financial shares, cement companies and resource stocks.

For the day, the index climbed 76.05 points or 1.08 percent to finish at the daily high of 7,139.63 after moving as low as 7,075.38. Among the actives, Bank Mandiri jumped 1.63 percent, while Bank Danamon Indonesia sank 0.78 percent, Bank Negara Indonesia advanced 1.07 percent, Bank Central Asia lost 0.50 percent, Bank Rakyat Indonesia collected 0.65 percent, Indosat Ooredoo Hutchison tumbled 1.87 percent, Indocement climbed 1.38 percent, Semen Indonesia surged 5.09 percent, Indofood Sukses Makmur rose 0.41 percent, Astra International accelerated 3.59 percent, Energi Mega Persada rallied 1.57 percent, Aneka Tambang soared 4.40 percent, Vale Indonesia shed 0.47 percent, Timah skyrocketed 5.71 percent and Bumi Resources, Bank CIMB Niaga and Astra Agro Lestari were unchanged.

The lead from Wall Street is cautiously optimistic as the markets opened slightly higher on Monday and hugged the line for much of the day before moving firmly into the green by the close.

The Dow added 50.66 points or 0.13 percent to finish at 39,169.52, while the NASDAQ rallied 146.70 points or 0.83 percent to end at 17,879.30 and the S&P 500 gained 14.61 points or 0.27 percent to close at 5,475.09.

The lackluster performance on Wall Street came as traders look ahead to the release of the Labor Department's closely watched monthly jobs report on Friday. The report, which is expected to show a slowdown in the pace of job growth in June, could impact the outlook for interest rates.

Traders may also be sticking to the sidelines ahead of remarks by Fed Chair Jerome Powell on Tuesday as well as the Independence Day holiday on Thursday.

On the U.S. economic front, the Institute for Supply Management released a report showing manufacturing activity in the U.S. unexpectedly contracted at a slightly faster rate in June. Also, the Commerce Department noted a slight decrease in U.S. construction spending in May.

Oil prices rose sharply on Monday, on expectations of higher demand, supply concerns and production cuts by OPEC. West Texas Intermediate Crude oil futures ended higher by $1.84 or about 2.2 percent at $83.38 a barrel.