Profit Taking May Dent Indonesia Shares

(RTTNews) - The Indonesia stock market bounced higher again on Thursday, one day after ending the four-day winning streak in which it had rallied almost 130 points or 1.6 percent. Now at a fresh record closing high, the Jakarta Composite Index sits just above the 8,250-point plateau although investors figure to lock in gains on Friday.

The global forecast for the Asian markets is weak on waning optimism over 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 higher on Thursday following gains from the financial shares and telecoms, while the cement and resource stocks were mixed.

For the day, the index improved 84.91 points or 1.04 percent to finish at 8,250.94 after trading between 8,159.94 and 8,272.63.

Among the actives, Bank CIMB Niaga rose 0.29 percent, while Bank Mandiri rallied 3.29 percent, Bank Danamon Indonesia collected 0.84 percent, Bank Negara Indonesia soared 4.06 percent, Bank Central Asia jumped 2.37 percent, Bank Rakyat Indonesia accelerated 3.76 percent, Indosat Ooredoo Hutchison vaulted 4.12 percent, Indocement tumbled 3.82 percent, Semen Indonesia added 0.39 percent, Indofood Sukses Makmur retreated 1.38 percent, United Tractors expanded 2.68 percent, Astra International climbed 3.49 percent, Energi Mega Persada declined 1.54 percent, Astra Agro Lestari surged 5.76 percent, Aneka Tambang plunged 3.30 percent, Vale Indonesia fell 0.45 percent, Timah skyrocketed 9.92 percent and Bumi Resources was unchanged.

The lead from Wall Street is soft as the major averages opened flat but quickly turned lower and spent the balance of the day in the red.

The Dow dropped 243.36 points or 0.52 percent to finish at 46,358.42, while the NASDAQ slipped 18.75 points or 0.08 percent to close at 23,023.62 and the S&P 500 sank 18.61 points or 0.28 percent to end at 6,735.11.

The pullback on Wall Street reflected profit taking following recent strength in the markets, which came amid persistent optimism about the artificial intelligence trade.

Investors may also have begun to express concerns about the ongoing U.S. government shutdown, which entered its ninth day with no end in sight.

Traders also kept an eye on remarks by several Federal Reserve officials, with Fed Governor Michael Barr said the central bank should move "cautiously" due to considerable uncertainty about the future course of the economy.

Crude oil prices fell sharply on Thursday due to the possible easing of hostilities in the Middle East. West Texas Intermediate crude for November delivery was down $1.10 or 1.76 percent at $61.45 per barrel.