Rally May Stall For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has climbed higher in back-to-back sessions, accelerating more than 550 points or 9 percent in that span. The Jakarta Composite Index now sits just above the 5,900-point plateau although it may run out of steam on Thursday.

The global forecast for the Asian markets is weak on further escalating tensions in the Middle East. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The JCI finished sharply higher on Wednesday following gains from the finance, food, cement and telecom sectors, while the resource companies were mixed.

For the day, the index rallied 155.73 points or 2.71 percent to finish at 5,902.38 after trading between 5,677.96 and 5,942.94.

Among the actives, Bank CIMB Niaga collected 1.64 percent, while Bank Mandiri spiked 4.16 percent, Bank Danamon Indonesia tumbled 2.27 percent, Bank Negara Indonesia accelerated 5.50 percent, Bank Central Asia surged 9.71 percent, Bank Rakyat Indonesia climbed 3.23 percent, Indosat Ooredoo Hutchison vaulted 4.01 percent, Semen Indonesia expanded 1.56 percent, Indofood Sukses Makmur added 0.81 percent, United Tractors rose 0.57 percent, Astra International gained 0.64 percent, Energi Mega Persada tanked 2.87 percent, Astra Agro Lestari strengthened 2.49 percent, Antam plunged 4.51 percent, Vale Indonesia stumbled 3.40 percent, Timah advanced 2.14 percent, Bumi Resources slumped 1.37 percent and Indocement was unchanged.

The lead from Wall Street is broadly negative as the major averages opened lower and continued trend deeper into the red as the day progressed, ending at session lows.

The Dow tumbled 953.33 points or 1.87 percent to finish at 49,918.78, while the NASDAQ tanked 509.32 points or 1.98 percent to end at 25,169.50 and the S&P 500 slumped 119.66 points or 1.62 percent.

The weakness that emerged on Wall Street came as President Donald Trump ramped up his threats against Iran following a recent exchange of attacks.

Trump's latest threats came after U.S. Central Command said forces completed "self-defense strikes" against Iran on Tuesday at the president's direction in response to the downing of a U.S. helicopter.

In economic news, the Labor Department reported that consumer prices in the U.S. increased in line with estimates in May. Core consumer price growth also matches expectations.

Crude oil prices surged Wednesday on concerns about the gulf conflict intensifying further after the U.S. and Iran resumed attacks, keeping the Strait of Hormuz closed. West Texas Intermediate crude for July delivery was up $2.26 or 2.56 percent at $90.46 per barrel.

Closer to home, Indonesia will release April figures for retail sales later today; in March, sales were up 3.4 percent on year.