Indonesia Stock Market Tipped To Extend Its Gains

(RTTNews) - The Indonesia stock market on Monday ended the seven-day losing streak in which it had tumbled more than 355 points or 5.4 percent. The Jakarta Composite Index now rests just above the 6,730-point plateau and it may add to its winnings on Tuesday.

The global forecast for the Asian markets is upbeat on bargain hunting and an improved outlook for interest rates. The European markets were down and the U.S. bourses were up and the Asian markets are tipped to follow the latter lead.

The JCI finished modestly higher on Monday as the financial shares and resource stocks were mostly higher.

For the day, the index added 19.33 points or 0.29 percent to finish at 6,734.45.

Among the actives, Bank Danamon Indonesia rallied 2.14 percent, while Bank CIMB Niaga jumped 1.70 percent, Bank Negara Indonesia dipped 0.26 percent, Bank Central Asia strengthened 1.46 percent, Bank Mandiri rose 0.25 percent, Bank Rakyat Indonesia collected 1.04 percent, Indosat Ooredoo Hutchison tanked 2.17 percent, Indocement increased 0.76 percent, Semen Indonesia plunged 2.88 percent, Indofood Suskes gained 0.72 percent, United Tractors soared 2.87 percent, Energi Mega Persada lost 0.68 percent, Astra Agro Lestari shed 0.62 percent, Aneka Tambang improved 0.78 percent, Vale Indonesia climbed 1.38 percent, Timah gathered 0.86 percent, Bumi Resources surged 2.33 percent and Astra International was unchanged.

The lead from Wall Street is broadly positive as the major averages opened flat on Monday but accelerated as the day progressed, ending near session highs.

The Dow surged 528 points or 1.58 percent to finish at 34,005.04, while the NASDAQ rallied 139.12 points or 1.26 percent to end at 11,143.74 and the S&P 500 jumped 56.18 points or 1.43 percent to close at 3,990.56.

The rally on Wall Street came as traders picked up stocks at reduced levels following last week's notable decline.

Positive sentiment was also generated in reaction to a survey from the New York Federal Reserve showing inflation expectations decreased at the short, medium, and longer terms in November.

Traders also looked ahead to the Federal Reserve's highly anticipated monetary policy decision on Wednesday. While the Fed is widely expected to slow the pace of interest rate hikes to 50 basis points, traders have recently expressed concerns about how much further the Fed will need to raise rates in order to contain inflation.

Crude oil prices rose sharply Monday on supply concerns following the continued closure of a pipeline carrying Canadian heavy crude to the U.S. Gulf Coast of Mexico. West Texas Intermediate Crude oil futures for January ended higher by $2.15 or 3 percent at $73.17 a barrel.