Indonesia Stock Market Due For Consolidation

(RTTNews) - The Indonesia stock market has climbed higher in four straight sessions, gathering almost 170 points or 2.6 percent along the way. The Jakarta Composite Index now rests just above the 6,980-point plateau although it's likely to run out of steam on Thursday.

The global forecast for the Asian markets suggests consolidation on rising treasury yields and concerns over the outlook for interest rates. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The JCI finished sharply higher on Thursday following gains from the financials shares and resource stocks.

For the day, the index jumped 120.24 points or 1.75 percent to finish at 6,980.65.

Among the actives, Bank Danamon Indonesia tanked 2.82 percent, while Bank CIMB Niaga strengthened 1.43 percent, Bank Negara Indonesia gained 2.56 percent, Bank Central Asia rallied 2.72 percent, Bank Mandiri soared 4.49 percent, Bank Rakyat Indonesia gathered 2.09 percent, Indosat Ooredoo Hutchison improved 1.58 percent, Indocement plunged 2.39 percent, Semen Indonesia added 0.65 percent, Indofood Suskes jumped 2.01 percent, United Tractors was up 0.08 percent, Astra International retreated 1.53 percent, Energi Mega Persada increased 1.38 percent, Astra Agro Lestari skyrocketed 7.36 percent, Aneka Tambang fell 0.27 percent, Vale Indonesia shed 0.36 percent, Timah accelerated 7.31 percent and Bumi Resources soared 6.59 percent.

The lead from Wall Street is negative as the major averages were unable to hold early gains, heading south by midday and finishing at daily lows.

The Dow slumped 90.22 points or 0.30 percent to finish at 30,333.59, while the NASDAQ shed 65.66 points or 0.61 percent to end at 10,614.84 and the S&P 500 lost 29.38 points or 0.80 percent to close at 3,665.78.

Stocks initially benefited from another batch of upbeat earnings news from big-name companies like IBM Corp. (IBM) and AT&T (T).

Buying interest waned over the course of the morning, however, with a continued surge in treasury yields contributing to the subsequent pullback by the markets. The yield on the benchmark ten-year note extended recent gains, reaching its highest levels in over fourteen years.

Concerns about the outlook for interest rates continue to drive yields higher, with Philadelphia Federal Reserve President Patrick Harker saying that he expects the Fed to continue raising rates "for a while."

The Fed is widely expected to raise interest rates by another 75 basis points in early November, bringing the target range for the federal funds rate to 3.75 to 4.0 percent.

Crude oil futures for November delivery settled higher on their expiration day as traders weighed energy demand and supply positions. West Texas Intermediate Crude oil futures for November rose $0.43 or 0.5 percent at $85.98 a barrel on the expiration day. But WTI Crude oil futures for December eased to $84.51 a barrel.