Additional Support Tipped For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day winning streak in which it had gathered more than 95 points or 1.3 percent. The Jakarta Composite Index now sits just above the 6,750-point plateau and it may add to its winnings on Wednesday.

The global forecast for the Asian markets is cautiously optimistic ahead of the Federal Reserve's monetary policy announcement later today. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

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

For the day, the index added 16.32 points or 0.24 percent to finish at 6,752.21 after trading between 6,666.41 and 6,754.52.

Among the actives, Bank CIMB Niaga rallied 1.47 percent, while Bank Mandiri dropped 0.87 percent, Bank Danamon Indonesia soared 3.79 percent, Bank Negara Indonesia dropped 1.24 percent, Bank Central Asia skidded 1.13 percent, Bank Rakyat Indonesia sank 0.80 percent, Indosat Ooredoo Hutchison retreated 1.56 percent, Indocement added 0.54 percent, Indofood Suskes stumbled 1.12 percent, United Tractors spiked 2.97 percent, Astra International fell 0.43 percent, Astra Agro Lestari improved 0.71 percent, Aneka Tambang slumped 1.16 percent, Vale Indonesia plummeted 5.26 percent, Bumi Resources advanced 0.89 percent and Semen Indonesia, Timah and Energi Mega Persada were unchanged.

The lead from Wall Street is positive as the major averages shook off early weakness on Tuesday, moving into positive territory by midday and ending firmly in the green.

The Dow advanced 123.91 points or 0.38 percent to finish at 33,052.87, while the NASDAQ added 61.76 points or 0.48 percent to close at 12,851.24 and the S&P 500 gained 26.98 points or 0.65 percent to end at 4,193.80.

The early weakness on Wall Street reflected a negative reaction to a Labor Department report showing that employment costs jumped slightly more than expected in the third quarter.

Selling pressure waned shortly after the start of trading, however, as traders seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement later today.

The subsequent rebound by stocks came as traders resumed Monday's bargain hunting, as stocks remain at relatively reduced levels despite the rally seen in the previous session.

Oil prices dropped on Tuesday, and posted a monthly loss as well, as concerns about the outlook for energy demand and a stronger dollar weighed on the commodity. West Texas Intermediate crude oil futures for December fell $1.29 or 1.6 percent at 81.02 a barrel, the lowest settlement in two months. WTI crude futures shed nearly 11 percent in October.

Closer to home, Indonesia will release September numbers for consumer prices later today. Overall inflation is seen higher by 0.24 percent on month and 2.6 percent on year, accelerating from 0.19 percent on month and 2.28 percent on year in the previous month. Core CPI is seen steady at an annual 2.00 percent.