Indonesia Bourse May Extend Wednesday's Losses

(RTTNews) - The Indonesia stock market on Wednesday ended the three-day winning streak in which it had gained almost 190 points or 2.7 percent. The Jakarta Composite Index now rests just above the 7,220-point plateau and the losses may accelerate on Thursday.

The global forecast for the overbought Asian markets is weak, with profit taking expected. The European and U.S. markets were mostly lower, and the Asian bourses are expected to follow that lead.

The JCI finished slightly lower on Wednesday following losses from the cement and telecom companies, while the financials and resource stocks were mixed.

For the day, the index dipped 8.29 points or 0.11 percent to finish at 7,222.46 after trading between 7,172.20 and 7,239.96.

Among the actives, Bank CIMB Niaga collected 0.29 percent, while Bank Mandiri dropped 0.95 percent, Bank Danamon Indonesia advanced 0.81 percent, Bank Negara Indonesia gathered 0.44 percent, Bank Central Asia lost 0.55 percent, Bank Rakyat Indonesia slumped 1.93 percent, Indosat Ooredoo Hutchison fell 0.47 percent, Semen Indonesia stumbled 1.39 percent, Indofood Sukses Makmur rallied 3.66 percent, United Tractors increased 0.70 percent, Astra International rose 0.22 percent, Energi Mega Persada surged 6.96 percent, Astra Agro Lestari improved 0.83 percent, Aneka Tambang gained 0.61 percent, Vale Indonesia added 0.57 percent, Timah plummeted 4.86 percent, Bumi Resources skyrocketed 8.20 percent and Indocement was unchanged.

The lead from Wall Street is soft as the major averages spent most of the day in positive territory before a late swoon sent them all into the red.

The Dow dipped 1.10 points or 0.00 percent to finish at 42,865.77, while the NASDAQ dropped 99.11 points or 0.50 percent to close at 19,615.88 and the S&P 500 sank 16.57 points or 0.27 percent to end at 6,022.24.

The downturn on Wall Street reflected profit taking after the early advance lifted the major averages to their best intraday levels in over three months.

The early strength in the markets followed the release of a closely watched Labor Department report showing U.S. consumer prices increased by slightly less than expected in the month of May.

Buying interest was also generated after U.S. and Chinese officials announced an agreement in principle on a framework to ease trade disputes between the two economic superpowers.

Crude oil prices surged on Wednesday amid the trade talks between the U.S. and China, as well as a fresh stand-off between the U.S. and Iran over a nuclear deal. West Texas Intermediate crude for July delivery closed up by $3.32 or 5.11 percent to settle at $68.30 per barrel.