Oversold Indonesia Bourse Called Lower Again On Thursday

(RTTNews) - The Indonesia stock market turned emphatically lower again on Wednesday, one session after ending the two-day slide in which it had given up almost 80 points or 1.3 percent. The Jakarta Composite Index now sits just above the 5,940-point plateau and it's expected to open to the downside again on Wednesday.

The global forecast for the Asian markets is negative on rising oil prices and continuing hostilities in the Middle East. The European and U.S. markets were down and the Asian markets figure to follow suit.

The JCI finished sharply lower on Wednesday with damage across the board, especially among the financial shares and resource companies.

For the day, the index cratered 254.36 points or 4.11 percent to finish at 5,941.07 after trading between 5,842.00 and 6,213.80.

Among the actives, Bank CIMB Niaga skidded 1.55 percent, while Bank Mandiri tumbled 2.88 percent, Bank Danamon Indonesia retreated 2.39 percent, Bank Negara Indonesia surrendered 5.05 percent, Bank Central Asia plunged 5.15 percent, Bank Rakyat Indonesia declined 4.61 percent, Indosat Ooredoo Hutchison dropped 2.35 percent, Indocement fell 0.40 percent, Semen Indonesia stumbled 2.55 percent, Indofood Sukses Makmur crashed 4.94 percent, United Tractors sank 2.22 percent, Astra International shed 1.22 percent, Energi Mega Persada contracted 5.59 percent, Astra Agro Lestari lost 2.56 percent, Aneka Tambang cratered 11.82 percent, Vale Indonesia plummeted 8.67 percent, Timah tanked 9.52 percent and Bumi Resources slumped 8.07 percent.

The lead from Wall Street is weak as the major averages opened lower on Wednesday and tracked deeper into the red as the day progressed, ending near session lows.

The Dow rumbled 620.72 points or 1.21 percent to finish at 50,687.07, while the NASDAQ sank 239.92 points or 0.89 percent to end at 26,853.98 and the S&P 500 lost 56.10 points or 0.74 percent to close at 7,553.68.

The pullback on Wall Street came on uncertainty about the situation in the Middle East, as negotiations between the U.S and Iran continue to drag on.

U.S. Central Command said U.S. forces defeated multiple Iranian ballistic missiles and drones and conducted "self-defense" strikes on Qeshm Island in response to attempted attacks by Iran. But the ongoing military exchanges have contributed to a sharp increase by the price of crude oil.

Crude oil prices soared on Wednesday as fresh military strikes in the Middle East renew war concerns as the Strait of Hormuz remains blocked for oil and energy trade. West Texas Intermediate crude for July delivery was up $2.31 or 2.46 percent at $96.07 per barrel.

In U.S. economic news, the Institute for Supply Management released a report showing its reading on U.S. service sector activity increased by more than expected in the month of May.