Losing Streak Likely To Continue For Indonesia Shares

(RTTNews) - The Indonesia stock market has finished lower in back-to-back sessions, dropping more than 80 points or 1.2 percent along the way. The Jakarta Composite Index now rests just above the 6,860-point plateau and it may take further damage again on Wednesday.

The global forecast for the Asian markets suggests consolidation on concerns over interest rates and possible recession. The European and U.S. markets were firmly lower and the Asian markets are tipped to follow that lead.

The JCI finished modestly lower on Tuesday as losses from the cement and resource stocks were mitigated by support from the financial sector.

For the day, the index sank 52.41 points or 0.76 percent to finish at 6,863.30 after trading between 6,814.34 and 6,920.34.

Among the actives, Bank CIMB Niaga collected 0.40 percent, while Bank Mandiri jumped 1.45 percent, Bank Danamon Indonesia declined 1.77 percent, Bank Negara Indonesia climbed 1.33 percent, Bank Rakyat Indonesia gained 0.98 percent, Indosat Ooredoo Hutchison surged 5.00 percent, Indocement plummeted 6.91 percent, Semen Indonesia stumbled 1.26 percent, Indofood Suskes improved 0.78 percent, United Tractors plunged 6.92 percent, Astra International skidded 1.11 percent, Energi Mega Persada rallied 1.80 percent, Astra Agro Lestari fell 0.32 percent, Aneka Tambang tumbled 1.90 percent, Timah dropped 0.99 percent, Bumi Resources tanked 4.96 percent and Bank Central Asia and Vale Indonesia were unchanged.

The lead from Wall Street is broadly negative as the major averages opened lower and moved deeper into the red as the day progressed, ending near session lows.

The Dow tumbled 367.17 points or 1.08 percent to finish at 33,684.17, while the NASDAQ sank 132.09 points or 1.08 percent to end at 12,080.51 and the S&P 500 dropped 48.29 points or 1.16 percent to close at 4,119.58.

The sell-off on Wall Street came as some traders looked to cash in on recent strength in the markets ahead of the Federal Reserve's monetary policy announcement later today.

With the Fed widely expected to raise interest rates by another 25 basis points, traders will pay close attention to the accompanying statement for clues about the outlook for rates.

Concerns about lawmakers' struggles to reach an agreement on raising the U.S. debt ceiling also weighed on Wall Street. U.S. Treasury Secretary Janet Yellen has warned the Treasury might run out of money to cover obligations by June 1.

In economic news, the Commerce Department said new orders for U.S. manufactured goods increased more than expected in March. Also, the Labor Department showed job openings in the U.S. fell more than expected in March.

Crude oil prices tumbled on Tuesday on concerns about the outlook for energy demand amid fears of a potential recession in the U.S. West Texas Intermediate Crude oil futures for June ended lower by $4.00 or 5.3 percent to $71.66 a barrel, the lowest close since March 24.