Indonesia Stock Market May Snap Losing Streak

(RTTNews) - The Indonesia stock market has finished lower in two straight sessions, shedding almost 80 points or 1 percent in that span. The Jakarta Composite Index sits just above the 8,040-point plateau although it's expected to open to the upside on Thursday.

The global forecast for the Asian markets is positive on optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The JCI finished slightly lower on Wednesday as losses from the financial, food and telecom sectors were mitigated by strong support from the resource and energy companies.

For the day, the index lost 17.24 points or 0.21 percent to finish at 8,043.82 after trading between 8,034.25 and 8,093.69.

Among the actives, Bank CIMB Niaga slipped 0.21 percent, while Bank Mandiri shed 0.45 percent, Bank Danamon Indonesia fell 0.42 percent, Bank Negara Indonesia retreated 1.22 percent, Bank Central Asia tumbled 1.64 percent, Bank Rakyat Indonesia tanked 2.31 percent, Indosat Ooredoo Hutchison surrendered 2.57 percent, Semen Indonesia sank 0.70 percent, Indofood Sukses Makmur stumbled 1.73 percent, United Tractors plunged 2.71 percent, Astra International contracted 1.23 percent, Energi Mega Persada skyrocketed 18.01 percent, Astra Agro Lestari slumped 2.14 percent, Aneka Tambang jumped 1.58 percent, Vale Indonesia plummeted 3.18 percent, Timah surged 18.38 percent, Bumi Resources soared 8.05 percent and Indocement was unchanged.

The lead from Wall Street remains cautiously optimistic as the major averages opened lower on Wednesday but trended higher through the session and ended with modest gains.

The Dow added 43.21 points or 0.09 percent to finish at a record 46,441.10, while the NASDAQ gained 95.15 points or 0.42 percent to close at 22.755.16 and the S&P 500 rose 22.74 points or 0.34 percent to end at 6,711.20, also a record.

The initial pullback came after the U.S. government officially shut down early this morning after lawmakers failed to pass a temporary spending bill.

However, the early selling pressure was offset by optimism about the outlook for interest rates following the release of disappointing private sector employment data.

The subsequent turnaround also came as analysts pointed out that the markets have historically not been materially impacted by government shutdowns.

Crude oil prices fell sharply again Wednesday on concerns of excess supply after OPEC said it will hike output more than expected in November. West Texas Intermediate crude for November delivery was down by $0.60 or 0.96 percent at $61.77 per barrel.