Losses May Accelerate For Indonesia Stock Market

(RTTNews) - The Indonesia stock market headed south again on Wednesday, one day after ending the two-day slide in which it had gathered more than 35 points or 0.5 percent. The Jakarta Composite Index now sits just above the 6,850-point plateau and it's expected to open under pressure again on Thursday.

The global forecast for the Asian markets is broadly negative following a downgrade in the United States' credit rating. The European and U.S. markets were firmly lower and the Asian markets are expected to open in similar fashion.

The JCI finished modestly lower on Wednesday following mixed performances from the resource stocks and support from the financial sector.

For the day, the index lost 31.99 points or 0.46 percent to finish at 6,854.51.

Among the actives, Bank Mandiri advanced 0.88 percent, while Bank Danamon Indonesia slid 0.33 percent, Bank Negara Indonesia rallied 2.31 percent, Bank Central Asia collected 0.82 percent, Indosat Ooredoo Hutchison tanked 2.45 percent, Indocement strengthened 1.44 percent, Semen Indonesia improved 1.49 percent, Indofood Suskes gained 0.71 percent, United Tractors plunged 2.91 percent, Astra International fell 0.36 percent, Astra Agro Lestari jumped 1.99 percent, Aneka Tambang retreated 1.47 percent, Vale Indonesia dipped 0.36 percent, Timah skidded 1.08 percent, Bumi Resources added 0.78 percent and Bank CIMB Niaga, Energi Mega Persada and Bank Rakyat Indonesia were unchanged.

The lead from Wall Street suggests consolidation as the major averages opened lower and remained in the red throughout the trading day, ending near session lows.

The Dow tumbled 348.16 points or 0.98 percent to finish at 35,282.52, while the NASDAQ sank 310.47 points or 2.17 percent to end at 13,973.45 and the S&P 500 dropped 63.34 points or 1.38 percent to close at 4,513.39.

The sell-off on Wall Street came after credit rating agency Fitch Ratings unexpectedly downgraded the United States' credit rating. Fitch downgraded the U.S.' long-term foreign-currency issuer default rating to AA+ from AAA, citing a "steady deterioration in standards of governance over the last 20 years."

In U.S. economic news, payroll processor ADP said U.S. private sector employment jumped more than expected in July. But while the report points to continued strength in the U.S. labor market, the data may lead to renewed concerns about the outlook for interest rates.

On Friday, the Labor Department is scheduled to release its more closely watched report on employment in July.

Crude oil prices tumbled on Wednesday amid concerns about outlook for demand, despite data showing a massive drop in crude stockpiles in the U.S. last week. West Texas Intermediate Crude oil futures for September ended lower by $.88 or 2.3 percent at $79.49 a barrel.