Indonesia Bourse May Reclaim Support At 7,200 Points

(RTTNews) - The Indonesia stock market has climbed higher in five straight sessions, advancing more than 220 points or 3 percent along the way. The Jakarta Composite Index now sits just above the 7,180-point plateau and it's likely to see additional support on Wednesday. The global forecast for the Asian markets is positive on renewed optimism about 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 higher on Tuesday following gains from the financial shares and cement stocks and a mixed performance from the energy and resource companies.

For the day, the index rose 11.08 points or 0.15 percent to finish at 7,181.82 after trading between 7,176.33 and 7,221.73. Among the actives, Bank CIMB Niaga collected 0.86 percent, while Bank Mandiri improved 0.83 percent, Bank Negara Indonesia spiked 2.60 percent, Bank Central Asia shed 0.52 percent, Bank Rakyat Indonesia advanced 0.95 percent, Indosat Ooredoo Hutchison jumped 1.78 percent, Indocement strengthened 1.64 percent, Semen Indonesia rallied 2.38 percent, Indofood Sukses Makmur climbed 1.02 percent, United Tractors skidded 1.06 percent, Energi Mega Persada plummeted 5.65 percent, Astra Agro Lestari fell 0.42 percent, Timah lost 0.47 percent, Bumi Resources gained 0.83 percent and Bank Danamon Indonesia, Astra International, Aneka Tambang and Vale Indonesia were unchanged.

The lead from Wall Street is upbeat as the major averages opened higher on Tuesday and mostly stayed that way throughout the trading day.

The Dow soared 537.98 points or 1.24 percent to finish at 44,025.81, while the NASDAQ rallied 126.58 points or 0.64 percent to close at 19,756.78 and the S&P 500 gained 52.58 points or 0.88 percent to end at 6,049.24.

U.S. stocks were firmly in positive territory, with investors assessing the possible impact of the Trump administration's economic policies and likely tariff proposals.

Optimism about some interest rate cuts by the Federal Reserve this year, and a drop in treasury yields also contributed to market's upside.

The recent retreat by treasury yields came as the U.S. inflation data released over the past few days led to renewed optimism about the outlook for interest rates.

Oil prices tumbled on Tuesday, weighed down by Trump's plans to boost oil and gas production in the U.S. West Texas Intermediate Crude oil futures for February closed down $1.99 or 2.56 percent at $75.89 a barrel.