Higher Open Predicted For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved higher in three straight sessions, advancing more than 60 points or 0.9 percent along the way. The Jakarta Composite Index now sits just above the 6,920-point plateau and it's got a solid lead for Thursday's trade.

The global forecast for the Asian markets is upbeat, with technology stocks expected to fuel the rally. The European and U.S. markets were up and the Asian markets are expected to open in similar fashion.

The JCI finished slightly higher on Wednesday following mixed performances from the financial shares, resource stocks and cement companies.

For the day, the index perked 4.96 points or 0.07 percent to finish at 6,921.41.

Among the actives, Bank CIMB Niaga spiked 2.37 percent, while Bank Mandiri stumbled 1.68 percent, Bank Negara Indonesia dipped 0.27 percent, Bank Rakyat Indonesia collected 0.45 percent, Indosat Ooredoo Hutchison rose 0.25 percent, Indocement improved 0.45 percent, Semen Indonesia fell 0.37 percent, Indofood Suskes climbed 1.07 percent, United Tractors advanced 1.00 percent, Energi Mega Persada rallied 1.65 percent, Astra Agro Lestari gained 0.66 percent, Aneka Tambang added 0.51 percent, Vale Indonesia slumped 1.24 percent, Timah strengthened 1.11 percent, Bumi Resources increased 0.70 percent and Bank Central Asia, Astra International and Bank Danamon Indonesia were unchanged.

The lead from Wall Street is positive as the major averages opened higher and accelerated as the day progressed, ending near session highs.

The Dow gained 184.15 points or 0.54 percent to finish at 34,472.98, while the NASDAQ spiked 215.16 points or 1.59 percent to end at 13,721.03 and the S&P 500 added 48.46 points or 1.10 percent to close at 4,436.01.

The spike by the Nasdaq came as tech stocks rallied ahead of earnings news from Nvidia (NVDA), and the chipmaker released strong fiscal second quarter results after the close of trading.

A steep drop by bond yields also generated some buying interest, as the 10-year yield pulled back further off highest levels in well over 15 years.

In economic news, S&P noted a slowdown in the pace service sector activity and a contraction in manufacturing activity in August. Also, the Commerce Department said new home sales rebounded much more than expected in July.

Crude oil futures settled lower Wednesday amid concerns about the outlook for oil demand after data showed a decline in global manufacturing activity. West Texas Intermediate Crude oil futures for October ended lower by $0.75 or 0.9 percent at $78.89 a barrel.

Closer to home, the central bank in Indonesia will conclude its monetary policy meeting later today and announce its decision on interest rates. The central bank is expected to keep unchanged its benchmark lending rate (5.75 percent), lending facility rate (6.50 percent) and its deposit facility rate (5.00 percent).