Indonesia Bourse May Hand Back Tuesday's Gains

(RTTNews) - The Indonesia stock market on Tuesday ended the four-day losing streak in which it had dropped more than 110 points or 1.6 percent. The Jakarta Composite Index now sits just above the 7,150-point plateau although it's tipped to open in the red again on Wednesday.

The global forecast for the Asian markets is negative in rising geopolitical tensions in the Middle East. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The JCI finished modestly higher on Tuesday following gains from the cement stocks and mixed performances from the financial and resource companies.

For the day, the index added 38.26 points or 0.54 percent to finish at 7,155.85 after trading between 7,143.60 and 7,181.47.

Among the actives, Bank CIMB Niaga fell 0.29 percent, while Bank Mandiri dropped 0.97 percent, Bank Danamon Indonesia collected 0.41 percent, Bank Negara Indonesia slumped 0.91 percent, Bank Central Asia jumped 1.68 percent, Bank Rakyat Indonesia shed 0.75 percent, Indocement advanced 0.88 percent, Semen Indonesia climbed 1.04 percent, Indofood Sukses Makmur lost 0.30 percent, United Tractors skidded 1.13 percent, Astra International dipped 0.22 percent, Energi Mega Persada plunged 4.32 percent, Astra Agro Lestari spiked 2.10 percent, Aneka Tambang surged 5.79 percent, Timah rose 0.43 percent, Bumi Resources sank 0.78 percent and Vale Indonesia and Indosat Ooredoo Hutchison were unchanged.

The lead from Wall Street is weak as the major averages opened slightly lower on Tuesday but saw the losses accelerate as the day progressed, ending firmly under water.

The Dow stumbled 299.29 points or 0.70 percent to finish at 42,215.80, while the NASDAQ slumped 180.12 points or 0.91 percent to close at 19,521.09 and the S&P 500 sank 50.39 points or 0.84 percent to end at 5,982.72.

While reports hinting at an end to hostilities contributed to a rally on Monday, news that President Donald Trump left a G7 summit early to focus on the conflict has led to worries about further escalation.

The weakness on Wall Street also came after the release of a Commerce Department report showing U.S. retail sales fell by more than expected in the month of May.

Crude prices soared on Tuesday, with the conflict between Israel and Iran showing no sign of retreat. West Texas Intermediate crude for July delivery shot up by $3.07 to settle at $74.84 per barrel.

Closer to home, the central bank in Indonesia will wrap up its monetary policy meeting later today and announce its decision on interest rates. The bank is expected to keep its benchmark lending rate (5.50 percent), deposit facility rate (4.75 percent) and lending facility rate (6.25 percent) all unchanged.