Indonesia Stock Market May Reverse Wednesday's Gains

(RTTNews) - The Indonesia stock market bounced higher again on Wednesday, one day after snapping the three-day winning streak in which it had advanced more than 85 points or 1.2 percent. The Jakarta Composite Index now sits just above the 7,070-point plateau, although it's expected to see renewed selling pressure on Thursday.

The global forecast for the Asian markets suggests consolidation ahead of key inflation data and on U.S. political uncertainty. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The JCI finished slightly higher on Wednesday following gains from the resource stocks, weakness from the cement companies and a mixed picture from the financials.

For the day, the index picked up 19.96 points or 0.28 percent to finish at 7,070.08.

Among the actives, Bank Danamon Indonesia tanked 2.90 percent, while Bank Negara Indonesia collected 0.54 percent, Bank Central Asia strengthened 1.43 percent, Bank Rakyat Indonesia gained 0.65 percent, Indosat Ooredoo Hutchison tumbled 1.87 percent, Indocement sank 0.73 percent, Semen Indonesia dropped 0.94 percent, Indofood Suskes climbed 1.16 percent, United Tractors shed 0.56 percent, Astra International rose 0.38 percent, Energi Mega Persada skidded 1.05 percent, Astra Agro Lestari retreated 1.42 percent, Aneka Tambang improved 0.76 percent, Vale Indonesia rallied 2.14 percent, Timah jumped 1.78 percent and Bumi Resources, Bank Mandiri, Bank CIMB Niaga and Jasa Marga were unchanged.

The lead from Wall Street is broadly negative as the major averages opened modestly lower on Wednesday but saw the losses accelerate as the day progressed, ending at session lows.

The Dow plummeted 646.89 points or 1.95 percent to finish at 32,513.94, while the NASDAQ plunged 263.03 points or 2.48 percent to close at 10,353.17 and the S&P 500 sank 79.54 points or 2.08 percent to end at 3,748.57.

The sharply pullback on Wall Street came as traders cashed in on recent strength in the markets amid lingering uncertainty about the results of the U.S. midterm elections as control of both houses of Congress remains unclear.

Traders may also be moving money out of stocks ahead today's highly anticipated report on consumer price inflation, which could have a significant impact on the outlook for interest rates.

Crude oil prices tumbled Wednesday, weighed down by a jump in crude stockpiles, concerns about the outlook for energy demand and a stronger U.S. dollar. West Texas Intermediate Crude oil futures for December ended lower by $3.08 or 3.5 percent at $85.83 a barrel, falling for the third consecutive session.