Indonesia Shares Poised To Open In The Red

(RTTNews) - The Indonesia stock market has alternated between positive and negative finishes through the last six trading days since the end of the five-day losing streak in which it had tumbled more than 220 points or 3.1 percent. The Jakarta Composite Index now sits just above the 7,200-point plateau and it may extend Wednesday's losses on Thursday.

The global forecast for the Asian markets is negative on pessimism over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.

The JCI finished modestly lower on Wednesday following losses from the cement stocks and mixed performances from the financial and resource companies.

For the day, the index shed 42.15 points or 0.58 percent to finish at 7,200.63 after trading between 7,162.48 and 7,252.46.

Among the actives, Bank CIMB Niaga dipped 0.28 percent, while Bank Negara Indonesia dropped 0.89 percent, Bank Central Asia collected 0.52 percent, Bank Rakyat Indonesia lost 0.86 percent, Indosat Ooredoo Hutchison weakened 1.52 percent, Indocement skidded 1.08 percent, Semen Indonesia retreated 1.62 percent, Indofood Suskes sank 0.78 percent, United Tractors declined 1.52 percent, Astra International tumbled 1.82 percent, Energi Mega Persada plunged 4.13 percent, Vale Indonesia slumped 1.20 percent and Timah, Bumi Resources, Bank Mandiri, Aneka Tambang, Bank Danamon Indonesia and Astra Agro Lestari were unchanged.

The lead from Wall Street is weak as the major averages opened sharply lower on Wednesday and stayed that way, although they managed to finish well off session lows.

The Dow dropped 94.45 point or 0.25 percent to finish at 37,266.67, while the NASDAQ slumped 88.72 points or 0.59 percent to close at 14,855.62 and the S&P 500 lost 26.77 points or 0.56 percent to end at 4,739.21.

The early weakness on Wall Street reflected ongoing uncertainty about the outlook for interest rates amid recent concerns the Federal Reserve won't lower rates as early as previously hoped.

Adding to worries the Fed will hold off on cutting rates, the Commerce Department released a report showing U.S. retail sales increased by more than expected in December.

A separate report from the Federal Reserve also showed an unexpected uptick in U.S. industrial production last month.

Crude oil futures settled higher on Wednesday, although concerns about the outlook for oil demand and a firm dollar limited the uptick in oil prices. West Texas Intermediate crude oil futures for February rose $0.16 at $72.56 a barrel.