Rally Expected To Stall For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has finished higher in three straight sessions, gathering almost 50 points or 0.8 percent along the way. The Jakarta Composite Index now rests just above the 6,860-point plateau although it's likely to run out of steam on Thursday.

The global forecast for the Asian markets suggests consolidation following recent gains and rising treasury yields. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The JCI finished modestly higher on Wednesday following gains from the cement companies and mixed performances from the financials and resource stocks.

For the day, the index gained 25.92 points or 0.38 percent to finish at 6,8.60.42.

Among the actives, Bank Danamon Indonesia skyrocketed 7.77 percent, while Bank CIMB Niaga shed 0.47 percent, Bank Negara Indonesia climbed 1.15 percent, Bank Central Asia fell 0.30 percent, Bank Mandiri dipped 0.26 percent, Bank Rakyat Indonesia collected 0.23 percent, Indocement jumped 1.89 percent, Semen Indonesia spiked 2.99 percent, Indofood Suskes advanced 0.81 percent, United Tractors lost 0.63 percent, Astra International rallied 2.76 percent, Energi Mega Persada surged 6.02 percent, Astra Agro Lestari soared 3.49 percent, Aneka Tambang strengthened 1.67 percent, Vale Indonesia accelerated 3.76 percent, Timah increased 0.39 percent, Bumi Resources sank 0.60 percent and Indosat Ooredoo Hutchison was unchanged.

The lead from Wall Street is soft as the major averages were unable to hold early gains on Wednesday, slipping into the red in afternoon trade and ending in negative territory.

The Dow shed 99.99 points or 0.33 percent to finish at 30,423.81, while the NASDAQ sank 91.89 points or 0.85 percent to end at 10,680.51 and the S&P 500 lost 24.82 points or 0.67 percent to close at 3,695.16.

Profit taking contributed to the pullback on Wall Street, as traders cashed in on the strong gains on Monday and Tuesday. The major averages ended Tuesday's trading well off their highs of the session, although the Dow still reached its best closing level in almost a month.

Lingering concerns about higher interest rates and the impact on the global economy also continued to weigh on the markets along with a jump in treasury yields. The yield on the benchmark 10-year note moved sharply higher following a modest pullback on Tuesday, reaching its highest levels in 14 years.

Stocks regained some ground following the release of the Federal Reserve's Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts. The Beige Book said economic activity in the U.S. has expanded modestly since September, although conditions varied across industries and districts.

Crude oil prices rose sharply Wednesday as data showed declines in U.S. crude and gasoline stockpiles last week. West Texas Intermediate Crude oil futures for November ended higher by $2.73 or 3.3 percent at $85.55 a barrel.

Closer to home, the central bank in Indonesia will wrap up its monetary policy meeting later today and then announce its decision on interest rates. The bank is expected to hike its benchmark lending rate from 4.25 percent to 4.75 percent, its deposit facility rate from 3.50 percent to 4.00 percent and its lending facility rate from 5.00 percent to 5.50 percent.