Rally May Stall For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved higher in back-to-back sessions, gathering almost 40 points or 0.6 percent along the way. The Jakarta Composite Index now sits just shy of the 6,890-point plateau, although it may run out of steam on Wednesday.

The global forecast for the Asian markets is mixed to lower thanks to rising recession fears. The European markets were up and the U.S. bourses were down and the Asian markets figure to split the difference.

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

For the day, the index added 37.77 points or 0.55 percent to finish at 6,888.76.

Among the actives, Bank Danamon Indonesia sank 0.73 percent, while Bank CIMB Niaga retreated 1.27 percent, Bank Negara Indonesia was up 0.54 percent, Bank Mandiri collected 0.76 percent, Bank Rakyat Indonesia slid 0.41 percent, Indosat Ooredoo Hutchison soared 4.56 percent, Indocement skidded 1.01 percent, Semen Indonesia strengthened 1.13 percent, Indofood Suskes fell 0.37 percent, United Tractors rose 0.39 percent, Astra International dropped 0.88 percent, Energi Mega Persada added 0.68 percent, Astra Agro Lestari rallied 2.17 percent, Aneka Tambang climbed 1.01 percent, Vale Indonesia improved 0.71 percent, Timah gained 0.71 percent, Bumi Resources surged 3.11 percent and Bank Central Asia was unchanged.

The lead from Wall Street is soft as the major averages shook off early support on Tuesday, quickly turning lower and spending the rest of the day in the red.

The Dow shed 1088 points or 0.03 percent to finish at 33,136.37, while the NASDAQ lost 79.50 points or 0.76 percent to end at 10,386.98 and the S&P 500 fell 15.36 points or 0.40 percent to close at 3,824.14.

The early strength on Wall Street came as traders looked to get the New Year started on a positive note following a dismal 2022. For last year, the NASDAQ plummeted 33.1 percent, the S&P 500 lost 19.4 percent and the Dow sank 8.8 percent.

A report from the International Monetary Fund says about one third of the world economy will likely go into a recession this year. A rebound from treasuries also added to the negative sentiment.

A report released by the Commerce Department unexpectedly showed a modest increase in U.S. construction spending in the month of November.

Crude oil prices fell on Tuesday amid concerns about the outlook for energy demand due to rising fears of a recession. West Texas Intermediate Crude oil futures for February ended down $3.33 or 4.2 percent at $76.93 a barrel, a two-week low.